Senator Rick Scott questions Intel CEO on job cut despite $20B grants – report

Republican Senator Rick Scott questioned Intel (NASDAQ:INTC) CEO Pat Gelsinger regarding the company’s plan to cut over 15,000 jobs despite planned $20B federal funding, Reuters reported, citing a letter to Gelsinger.

The funding from the U.S. Commerce Department is intended to bolster the semiconductor manufacturing segment. Scott expressed concerns about whether the taxpayer funds are allocated effectively.

Scott questioned if the funding plan had failed “to include real metrics that would protect taxpayer dollars from going to companies that could not meet high standards for U.S. manufacturing and job creation.” the report showed.

Intel (INTC) earlier said that it plans to eliminate thousands of jobs to reduce costs and help fund a turnaround plan.

Scott requested specifics on the number of U.S. employees affected by the layoffs and how these job cuts might influence Intel’s (INTC) planned investments in semiconductor production.

“What is Intel trying to achieve with these job cuts, and why have billions of U.S. taxpayer dollars in investments not been sufficient support to avert the need for layoffs?” Scott enquired.

The expected funding, which includes $8.5B in grants and up to $11B in loans — are intended to create ~10,000 manufacturing jobs and 20,000 construction jobs across various states, including Arizona, New Mexico, Ohio, and Oregon. The grant agreement is yet to be finalized.

Shares of Intel (INTC) fell 1.12% to $19.39 on Thursday during pre-market hours of trading.