Intel Lays Off ‘Hundreds,’ Consolidates IT Operations Under Infosys: Report

Intel has laid off an undisclosed number of IT workers as part of a move to consolidate some operations under Indian solution provider Infosys, according to a report.

Citing multiple sources at Intel, The Oregonian Friday said the layoffs number “in the hundreds” and are spread across several facilities in the U.S. and at an administrative facility in Costa Rica. The layoffs seem to be less focused on cost-cutting measures and more on changing the way Intel handles internal technical systems, according to the report.

[Related: Infosys President On The Company’s Planned Fluido Acquisition]

Intel previously used multiple IT contractors but now will consolidate operations under a single contractor, Infosys, according to the report, which cited an internal Intel memo.

Intel employs 107,400 workers worldwide, according to its most recently quarterly financial report, up from 102,700 reported in its 2017 annual report.

"Changes in our workforce are driven by the needs and priorities of our business, which we continually evaluate,” Intel said in a statement emailed to CRN. "We are committed to treating all impacted employees with professionalism and respect."

Intel declined to respond directly to questions about the layoffs and its strategy to outsource to Infosys.

Infosys did not respond to a request for comment.

Shares of Intel traded up 1.2 percent Monday afternoon at $54.36.