Intel CEO talks strategy as job cuts begin in Santa Clara, Folsom, Oregon

A week after announcing that Intel would cut 12,000 jobs by mid-2017, CEO Brian Krzanich is sharing a strategic plan for the world’s largest chip maker.

In a blog post Tuesday, Krzanich said “our strategy itself is about transforming Intel from a PC company to a company that powers the cloud and billions of smart, connected computing devices.”

Krzanich identifies “five core beliefs that I hold to be undeniably true for the future”: the cloud, Internet of Things, memory and programmable solutions, connectivity and Moore’s Law.

The changes Santa Clara-based Intel is making comes years after being late to the mobile revolution and as the chip industry as a whole is being forced to adjust to a world where the PC is not king. In our annual Mercury News SV150 special report, Pete Carey reported that the valley’s chip industry — facing slowing sales — shrank from 36 companies in 2014 to 30 companies in 2015.

One industry challenge is Moore’s Law — the “law” of the doubling of transistors that will fit on a chip every couple of years. But Krzanich wrote:

Intel will confidently continue to harness its value… In my 34 years in the semiconductor industry, I have witnessed the advertised death of Moore’s Law no less than four times.  As we progress from 14 nanometer technology to 10 nanometer and plan for 7 nanometer and 5 nanometer and even beyond, our plans are proof that Moore’s Law is alive and well. Intel’s industry leadership of Moore’s Law remains intact, and you will see continued investment in capacity and R&D to ensure so.

As for the mobile revolution, might Intel soon be inside Apple’s iPhones? The buzz around the longtime rumor is getting louder after Qualcomm’s CEO last week said he’s “assuming” the company is losing some orders from a big customer.

Meanwhile, Intel’s job cuts have begun. The company is cutting 296 jobs at six facilities at its Santa Clara headquarters and 269 jobs in Folsom, according to company filings Monday with the California Employment Development Department.

According to the filings, the company is notifying the affected Santa Clara and Folsom employees this week; their termination date is May 31. Intel is giving the workers six weeks of additional pay and three months of paid COBRA health care premiums, plus additional pay and benefits based on how many years of service they have with the company.

The company also is cutting 784 jobs at facilities in Oregon.

 

Photo by Associated Press

 

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  • Intel sucks.. Old company going the way of Xerox and Polaroid.. Please stop talking.. and the only reason the stock is at this level is because everything else is in a bubble and these guys pay a dividend.. short INTC..

  • hoapres

    The Americans are all laid off. Only h1bs will remain.

  • Kungaloosh

    How many H1-Bs will be cut?

    • Mark

      Some number close to zero.

  • Massolo

    They fire someone and then ask them to buy their products. With what, moron?

  • OleTimer56

    So Intel lays off people and continues to bring in foreign labor under the H1B program – – typical !

  • xyz

    why are people after H1b? these are not govt companies to do what govt and ppl want.. they hire whom they like.. correct?

 
 
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