Global semiconductor leader Intel lowered its sales forecast for 2015 on the gloomy PC market and reportedly planned job cuts to reduce operating costs. The mobile division of Intel Taiwan was said to have been told by the company on June 8 to let go of 20 percent of its staff.
Previously in April, Intel announced to cut research and administrative budget by US$300 million. The industry believed the layoff in June is a response to the company’s gloomy 2015 outlook.
The global layoff is not the only reason regarding the downsizing in Taiwan. After Intel announced late last year to combine its PC and money-losing mobile processor divisions into Client Computing Group, many employees in Intel Taiwan were already expecting layoffs, according to various sources.
Some market observers contended that the layoff was also a reaction to its clients’ business situations. Asus’ decision to move 80 percent of its orders for new products to Qualcomm and HTC’s struggle in the market both seemed to affect Intel’s human resource planning in Taiwan. In addition, Intel could also be planning to move its focus on the human resource management to its China division, due to the much larger chip market there.
According to Taiwanese daily the Economic Daily News, Intel has introduced early retirement packages in Taiwan since as early as Q1 this year, to moderately reduce its staff size. The reported upcoming layoff will actually be the second phase of downsizing. However, Intel Taiwan has yet to respond to inquiries about the layoff.
Intel currently employs 106,000 employees around the world, including 650 in Taiwan. Meanwhile, Intel’s capital expenditure this year was also reduced to US$8.7 billion, the lowest in five years.