Senator Rick Scott Questions Intel CEO on Job Cuts

Republican Senator Rick Scott on Wednesday raised concerns with Intel CEO Pat Gelsinger regarding the company’s plans to cut more than 15,000 jobs. This is despite Intel being set to receive nearly $20 billion in U.S. grants and loans aimed at boosting chip production.

In a letter obtained by Reuters, Scott questioned whether the Commerce Department’s planned awards had adequately safeguarded taxpayer money by ensuring that recipient companies meet high standards for U.S. manufacturing and job creation.

U.S. Government’s Investment in Chip Production:

The Commerce Department announced in May a preliminary agreement to provide Intel with $8.5 billion in grants, up to $11 billion in loans, and access to a 25% investment tax credit. However, the finalization of this chip award is still pending.

The agency stated that this funding is intended to support the creation of over 10,000 manufacturing jobs and nearly 20,000 construction jobs across projects in Arizona, New Mexico, Ohio, and Oregon.

Intel’s Workforce Reduction Plan:

Earlier this month, Intel announced plans to reduce costs by $10 billion by 2025, which includes cutting its workforce by more than 15%. The majority of these layoffs are expected to be completed this year.

Intel’s CEO, Pat Gelsinger, noted that the company’s workforce is currently 10% larger than it was in 2020, despite a significant drop in revenue, which was $24 billion higher in 2020 compared to 2023. Gelsinger mentioned that the company needs fewer employees at headquarters and more personnel in the field supporting customers.

Scott’s Request for Detailed Information:

Senator Scott is seeking more information from Intel regarding the impact of these job cuts on U.S. employees and whether the reductions will affect the company’s planned semiconductor manufacturing investments.

In his letter, Scott asked, “What is Intel trying to achieve with these job cuts, and why have billions of U.S. taxpayer dollars in investments not been sufficient support to avert the need for layoffs?”

Awaiting Response from Intel and the Commerce Department:

The Commerce Department declined to comment on Senator Scott’s letter, and Intel has not yet responded to requests for comment.

The outcome of Scott’s inquiry may influence further discussions about allocating government funds to private companies, particularly concerning job preservation and creation.