Intel Layoffs: Chipmaker Fires About 2,000 Employees In This Area; Check Details Here

In a mid-September update, Gelsinger indicated that Intel had already reduced more than half of the targeted positions through early retirement packages and voluntary buyouts

Intel Layoffs: Intel has started mass layoffs as part of its cost-cutting efforts, affecting over 2,000 jobs across its facilities in Oregon, Arizona, and California. On Tuesday, the Santa Clara, California-based company notified officials in these states, outlining plans to reduce its workforce by approximately 1,300 employees in Oregon, 385 in Arizona, and 319 in California, according to a report from CRN.

The publication obtained a notice from Intel addressed to the state of Texas indicating the company's intention to lay off 251 employees in Austin. The notices are mandated by each state’s Worker Adjustment and Retraining Notification (WARN) Act, which requires companies to notify employees within 30 days when layoffs affect 50 or more workers at a single site.

An Intel spokesperson confirmed to CRN that the layoffs are part of a strategy outlined by CEO Pat Gelsinger in August. The strategy aims to cut over 15,000 jobs and reduce costs by more than $10 billion in response to deteriorating financial conditions.

In a mid-September update, Gelsinger indicated that Intel had already reduced more than half of the targeted positions through early retirement packages and voluntary buyouts, with further layoffs expected to follow.

“As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect,” the spokesperson said.

The job cuts coincide with several significant changes announced by Gelsinger a month ago, aimed at enhancing the company's profitability and competitiveness. These changes include postponing the opening of new facilities outside the United States, transitioning Intel's contract chip manufacturing division into an independent subsidiary, and reinforcing its commitment to the x86 strategy.

“These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth,” said the spokesperson.

In its WARN notices to California and Oregon, Intel announced that layoffs in both states will begin on November 15. The company indicated that affected employees have either received a 60-day notice before their separation or a four-week notice, which includes nine weeks of pay and benefits “in lieu of further notice.”

As detailed in the WARN notice sent to Oregon, approximately 1,300 employees in Oregon were based in the unincorporated community of Aloha and the city of Hillsboro, located just outside Portland. In California, 47 laid-off employees were from a facility in San Jose, while the remaining 272 were based in Folsom, according to Intel's notices to the state.

In Arizona, the WARN notice webpage indicated that the 385 Intel employees affected were located in Chandler.