Report: Senator Rick Scott questions Intel CEO over job cuts despite $20 billion in grants

Republican Senator Rick Scott questioned Intel (NASDAQ:INTC) CEO Pat Gelsinger on the company's plan to cut more than 15,000 jobs despite planned $20 billion in federal funding, Reuters reported, citing a letter to Gelsinger.

The funds from the US Department of Commerce are intended to strengthen semiconductor manufacturing. Scott expressed concerns about the effective allocation of taxpayers’ money.

Scott questioned whether the financing plan failed to “incorporate real metrics that would prevent taxpayer dollars from going to companies that cannot meet high standards for U.S. manufacturing and job creation,” the report said.

Intel (INTC) had previously announced that the company plans to cut thousands of jobs to cut costs and finance a turnaround plan.

Scott asked for details on the number of U.S. employees affected by the layoffs and how these job cuts could impact Intel's (INTC) planned investments in semiconductor production.

“What is Intel trying to achieve with these job cuts and why have billions of dollars of investment by U.S. taxpayers not been enough to avoid layoffs?” asked Scott.

The expected funding, which includes $8.5 billion in grants and up to $11 billion in loans, is expected to create about 10,000 manufacturing jobs and 20,000 construction jobs in several states, including Arizona, New Mexico, Ohio and Oregon. The grant agreement has yet to be finalized.

Shares of Intel (INTC) fell 1.2% to USD 19.39 on Thursday during pre-market trading hours.