05:11 AM EDT, 08/29/2024 (MT Newswires) -- Intel ( INTC ) Chief Executive Pat Gelsinger was asked for more details by Sen. Rick Scott, R-Florida, on the company's plans to cut more than 15,000 jobs despite the planned grants and loans by the US Commerce Department, Reuters reported Wednesday, citing a letter seen by the news outlet.

Earlier this month, Intel ( INTC ) said it is planning to reduce costs by $10 billion in 2025 and cut its workforce by more than 15%, the report said.

Scott wants the company to detail how many US employees will lose their jobs and whether the layoffs will impact its planned semiconductor manufacturing investments. He also asked why billions of dollars in investments are not enough to avert the layoffs, Reuters reported.

In May, the Commerce Department announced a preliminary agreement for $8.5 billion in grants and up to $11 billion in loans for Intel ( INTC ), plus access to a 25% investment tax credit, according to the report.

In the letter, Scott also questioned if the Commerce Department's planned awards had failed to "include real metrics that would protect taxpayer dollars from going to companies that could not meet high standards for US manufacturing and job creation," according to the report.

Intel ( INTC ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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