[News] Altera, Spun Off From Intel Earlier This Year, Reportedly Cutting Nearly 100 Jobs

According to San Francisco Chronicle, Altera—the programmable chipmaker recently spun off from Intel—plans to cut about 82 jobs at its San Jose headquarters, based on a Worker Adjustment and Retraining Notification (WARN) filed with the state of California.

The job cuts at Altera were announced last week and are set to take effect in October, according to state filings, as reported by KRON4. As PeopleMatters notes, citing sources, the layoffs come as part of the company’s transition under new ownership.

However, Tom’s Hardware notes that the timing of these changes at Altera coincides with a period of significant turbulence for Intel, which has laid off tens of thousands of employees in recent quarters. As the San Francisco Chronicle highlights, Altera’s layoffs come on the heels of hundreds of recent job cuts by Intel across the Bay Area and the rest of California.

Intel is cutting about 24,000 jobs this year—reducing its workforce by roughly one-quarter, according to a report from The Verge last month.

Earlier this year, Altera was spun off as an independent company. As PeopleMatters notes, Intel retains a 49% stake after selling a 51% majority share to private equity firm Silver Lake in a deal valued at USD 8.75 billion, which is expected to close later this year.

When Intel acquired Altera in 2015 for USD 16.7 billion—its largest takeover at the time—it saw the FPGA maker as a key opportunity to diversify its revenue streams and bolster its position in the data center market, as Tom’s Hardware states. However, the tech giant has struggled to grow Altera’s business.

In addition to Altera, as noted by a Tom’s Hardware report from July, Intel is also spinning off its Network and Edge Group (NEX) into a standalone business.

Read more

• [News] Trump Administration Reportedly Mulling a Stake in Intel Amid U.S. Manufacturing Push
• [News] Intel Sells Altera to Silver Lake for $4.46B; Taps Marvell Exec as New CEO

(Photo credit: Altera)