December 5, 2022
There is hardly a week that goes by without news of layoffs and cost-cutting schemes among tech companies making headlines.
The new trend has taken several forms, including mandatory termination of appointments, severance pay after being fired, Twitter’s model of continuing to pay laid-off employees for three months, recommendation letters, and many others.
Chipmaker Intel has implemented a novel cost-cutting strategy at its Ireland office. The concept is simply known as voluntary time-off programs, and it entails employees taking three months off without pay as the company looks to cut costs by $3 billion next year to counteract a dramatic downturn in the global industry.
“Voluntary time off programs allow us an opportunity to reduce short-term costs and offer employees attractive time off options,” Intel said, adding that manufacturing talent represents a critical element of its business in Ireland.
Intel said the scheme is a “voluntary time-off programme”. Asked what would happen if too few, or too many, staff signed up, Intel added: “Staff can apply and the business will decide what it can manage.”
In response to the worsening economic situation, Intel announced in October that it would lay off an unspecified number of employees worldwide and even discontinue some product lines. These plans are part of a massive spending cut, with Intel aiming to save $3 billion per year starting next year and $8 billion to $10 billion by 2025.
Unpaid leave is being given to up to 2,000 employees, accounting for 40% of all employees.
The sources for this piece includes an article in TheRegister.
