US technology firm Intel has come under congressional scrutiny following reports the company intends to reduce its workforce despite having received substantial government subsidies.
Intel announced the job cuts earlier this week, explaining the cuts would affect nearly 15,000 workers.
Intel received over 30$ billion in direct funding, loans, and tax credits from the US government as part of President Joe Biden’s CHIPS and Science Act.
However, Intel is now claiming it will be firing workers in order to “eliminate bureaucracy,” “expedite workflows,” and “automate and simplify processes.”
US Senator Rick Scott (R-FL), longtime critic of the CHIPS act, sent a letter to Intel Chief Executive Officer (CEO) Patrick Gelsinger inquiring upon the timing and nature of the job cuts.
Senator Scott said he has “concerns about (Intel) cutting 15% of its workforce while receiving billions in taxpayer money & still doing business in Communist China.”
In the letter, Scott requests CEO Gelsinger to explain if American workers will be affected by the cuts, if Intel will still be investing in American semiconductor manufacturing, and if any public funds received will be invested in China.
Intel is not the only American company whose employee reductions have garnered Republican criticism.
Earlier this week, Senator Marco Rubio (R-FL) confronted American agricultural company John Deere for its plans to enact large layoffs.
John Deere has reportedly claimed such layoffs were caused by lower net farm income, higher interest rates and market volatility. The layoffs come as the company shifts part of its production to Mexico.
Through a public letter, Senator Rubio lamented John Deere’s decision to lay off American workers while expanding operations in Mexico.
“America needs a strong manufacturing sector to build the tractors, combines and other implements that make our country’s agricultural self-sufficiency and leadership possible,” said Rubio. “American corporations, like John Deere, have a duty to their workers, nation, customers, and shareholders.”
