Intel is laying off more than 1,700 workers across Oregon, Arizona and California, according to Worker Adjustment and Retraining Notification letters filed Tuesday.
The layoffs include 1,300 employees across Intel’s four campuses in Aloha and Hillsboro, Oregon, 385 workers at its Chandler, Arizona, plant and 47 workers at a research and development site in San Jose, California.
The Oregon layoffs make up approximately 6% of Intel’s Oregon campus, the company’s largest manufacturing site with over 23,000 employees, according to the company’s website.
The Oregon and California job cuts are set to begin Nov. 15, according to the WARN Act letters. The company also has fabrication campuses in New Mexico and its Ohio campus is currently under construction. As of Oct. 16, a WARN letter had not been submitted for the New Mexico campus, according to state officials.
The job cuts are part of the company’s cost savings plan announced in August. Intel will lay off 15% of its workforce, or about 15,000 workers, by the end of 2025 to cut $10 billion in spending. The plan comes after the chipmaking titan’s revenue dropped 1% year over year in Q2.
“These are the most difficult decisions we ever make, and we are treating people with care and respect,” an Intel spokesperson said in a statement. “These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
Despite the layoffs, Intel is still planning to move forward with projects in Oregon, Arizona, New Mexico and Ohio, CEO Pat Gelsinger said in a Sept. 16 message to employees.
The chipmaker received an $8.5 billion award through the CHIPS and Science Act in March to grow its U.S. manufacturing network. The four semiconductor projects are part of Intel’s plan to invest more than $100 billion to expand chip production capacity and capabilities in the U.S. over the next five years.
