Intel will slash $2,521 million in employee compensation, reduce its workforce by 10 percent and reduce its stock-based compensation program by 1 percent, a decision it said was necessary in light of the government’s shutdown and the looming threat of a government shutdown.
The announcement comes as Intel faces increasing pressure from congressional Republicans to release its full cost-saving plans for the years 2016 and 2017.
Intel said it will spend the $2 billion in savings on reducing costs, including closing or consolidating its manufacturing facilities, and creating new positions at its data centers, as well as making “necessary” capital improvements to the company’s IT infrastructure.
The $2B cut in employee benefits, $1.7 billion in reduced benefits, and $400 million in stock-freeze and restructuring are the biggest in Intel’s history, according to the announcement.
The company said it also plans to cut costs by creating and retaining more than 400 jobs and by “increasing employee benefits to make them more affordable.”
Intel’s stock has plummeted nearly 30 percent since the start of the shutdown in September.