On Thursday, semiconductor chip manufacturer Intel announced it would be cutting 15,000 jobs as part of an overall cost-saving strategy. The company is also suspending its dividend payments. Intel reported a loss of $1.6 billion for the second quarter of this year.
Intel entered into an agreement with the federal government to receive an $8.5 billion grant through the CHIPS Act in March of this year. The agreement also included eligibility for a further $11 billion in federal loans. The company’s announcement at the time said the investments that the grant would support were “expected to create more than 10,000 company jobs.”
So, even if that 10,000 number comes true — and be very skeptical that it will — Intel is cutting 5,000 more jobs than that right now. Government has picked a real winner here.