Intel begins employee layoffs and offers unpaid leave to its manufacturing staff

American chipmaker Intel has begun laying off a part of its workforce, even as it is offering thousands of its manufacturing staff globally three months of unpaid leave, in a move expected to help the company weather poor sales amid global macroeconomic conditions, a report by the Economic Times stated.

The rumoured layoffs, which are reportedly beginning from January 31, 2023, come after Intel said in October that it plans to drive nearly $3 billion in annual savings in the near term and $8 billion to $10 billion by the end of 2025, with savings particularly coming from "people costs" from both operations and sales departments.

Earlier reports have mentioned that the chip-maker's planned job cuts could run into thousands, especially hitting its sales and marketing teams, as consumer PC sales nosedive globally.

In a similar report, the company has offered employees at the company’s manufacturing plants in Oregon and elsewhere three months of unpaid leave. Intel spokeswoman Addy Burr confirmed Tuesday that the company is offering voluntary time off to its manufacturing employees around the world.

The Intel layoffs follow a trend of job cuts at several tech companies recently, including PC maker, HP Inc., social media giant, Meta Platforms Inc., and e-commerce giant, Amazon Inc., amid slowing growth, falling stock prices and recession concerns.