Intel has commenced widespread layoffs as part of its ongoing cost-cutting measures, with more than 2,000 employees affected across key locations in the US states of Oregon, Arizona, and California. The chipmaker has issued formal notifications to these states, as required under the Worker Adjustment and Retraining Notification (WARN) Act.
The company’s WARN filings reveal that 1,300 employees in Oregon, 385 in Arizona, and 319 in California are set to lose their jobs. Additionally, Intel has notified Texas authorities of plans to lay off 251 employees in Austin.
Intel’s restructuring plans
Intel’s job cuts are part of a larger restructuring plan, which aims to reduce the company’s workforce by over 15,000 employees and cut costs by more than $10bn. The semiconductor giant’s CEO Pat Gelsinger had initially outlined these cost-saving measures in August, citing the need for drastic action to navigate deteriorating financial conditions.
These decisions were conveyed as part of the company’s financial results for the second quarter of 2024 (Q2 2024).
Gelsinger later provided an update in mid-September, indicating that the company had already eliminated over half of the targeted 15,000 jobs through early retirement packages and voluntary buyouts. However, further layoffs are now being implemented to meet the company’s financial goals.
The layoffs come alongside other significant changes within the company, as Intel works to improve profitability and remain competitive. These include delaying the opening of new facilities outside the US, restructuring its contract chip manufacturing business into an independent subsidiary, and doubling down on its x86 chip strategy.
In its WARN filings for Oregon and California, Intel confirmed that the job cuts in these states would begin on 15 November. Affected employees have either received a 60-day notice period or, in some cases, a four-week notice combined with nine weeks of pay and benefits in lieu of further notice.
In Oregon, the affected employees were based at Intel’s facilities in Aloha and Hillsboro, near Portland. In California, 47 laid-off employees were based in San Jose, with the remaining 272 located at a facility in Folsom. Meanwhile, the 385 employees in Arizona were based in Chandler.
The cuts are part of Intel’s broader strategy to adapt to challenging market conditions, with further changes expected as the company continues to pursue its restructuring and cost-reduction objectives.
Towards the end of September, reports emerged that Intel declined an approach from British semiconductor firm Arm to potentially acquire its product division. Intel was reported to have confirmed that the division, which produces chips for personal computers, networking equipment, and servers, is not for sale.
Read more: Intel turns down Arm’s attempt to acquire product division
