Intel has begun layoffs and is also offering thousands of manufacturing employees globally three months of unpaid leave as it aims to weather the poor sales amid global macroeconomic conditions.

The company started its expected layoffs in California with at least 201 employees as “part of a broader cost cutting effort”, reports CRN.

The layoffs are scheduled to begin from January 31, the report said, adding that according to the “Worker Adjustment and Retraining Notifications”, 111 employees will be laid off at Intel’s Folsom, California location while “90 employees will be asked to go from Santa Clara location, where the company is headquartered”.

In October, Intel said it plans to drive nearly $3 billion in annual savings in the near term and $8 billion to $10 billion by the end of 2025, and these savings will majorly come from “people costs” from both operations and sales departments.

According to another report in Oregon Live, Intel is offering thousands of manufacturing employees three months of unpaid leave.

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“Retaining our manufacturing talent is a key element of positioning Intel for long-term growth. Voluntary time off programmes allow us an opportunity to reduce short term costs and offer employees attractive time off options,” the company was quoted as saying in the report.

Intel is Oregon’s largest corporate employer, with 22,000 people assigned to its manufacturing, research and administrative campuses in Washington County.

The Financial Times reported last week that thousands of Intel workers in Ireland were offered three months of unpaid leave.

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Intel CEO Pat Gelsinger, during the company’s Q3 earnings call in October, said the company is “responding to the current environment by taking aggressive actions to reduce costs”.

“Inclusive in our efforts will be steps to optimise our headcount. These are difficult decisions affecting our loyal Intel family, but we need to balance increased investment,” the Intel CEO had announced.

Earlier reports said that the chip-maker is planning job cuts that can run in thousands, especially hitting its sales and marketing teams, as consumer PC sales nosedive globally.