Intel Plans To Cut 2000 Jobs, These Regions Will Be Affected, Details Inside

Arizona: In a move to streamline operations and reduce its workforce, Intel has initiated mass layoffs as part of its cost-cutting strategy, planning to eliminate around 1,300 jobs in Oregon, 385 in Arizona, and 319 in California.   

According to a report in CRN, Intel has notified the state of Texas with its intention to lay off 251 employees in Austin. These notifications comply with the Worker Adjustment and Retraining Notification (WARN) Act, which mandates that companies inform employees at least 30 days in advance when layoffs impact 50 or more workers at a single location.

Intel Plans To Cut 2,000 Jobs 

“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,” Intel spokesperson was quoted as saying by CRN.

In a mid-September update, Gelsinger reported that Intel had already cut more than half of the targeted positions through early retirement packages and voluntary buyouts, with additional layoffs anticipated.

“As part of the comprehensive cost savings plan we announced in August, we are making the tough but necessary decisions to downsize our workforce. These are the most difficult choices we face, and we are committed to treating everyone with care and respect,” the spokesperson stated.

Intel To Cut 15,000 Jobs Worldwide

These job cuts align with several significant changes Gelsinger introduced a month ago to boost the company's profitability and competitiveness. These changes include delaying the opening of new facilities outside the U.S., transitioning Intel's contract chip manufacturing division into an independent subsidiary, and reaffirming its commitment to the x86 strategy.

“These changes support our goal of becoming a leaner, simpler, and more agile company as we position Intel for long-term sustainable growth,” the spokesperson added. According to its WARN notices for California and Oregon, Intel stated that layoffs in both states will commence on November 15.

The company indicated that affected employees either received a 60-day notice prior to their separation or a four-week notice, which includes nine weeks of pay and benefits “in lieu of further notice.”

The WARN notice for Oregon specified that around 1,300 employees based in the unincorporated community of Aloha and the city of Hillsboro, near Portland, would be impacted. In California, 47 laid-off employees were from a facility in San Jose, while the remaining 272 were located in Folsom, as per Intel's notices to the state. In Arizona, the WARN notice webpage indicated that the 385 affected employees were based in Chandler.