1,300 Intel Layoffs Planned At Hillsboro Campus

After posting a loss in excess of $1 billion in August, the chipmaker Intel said on Tuesday that 1,300 Oregon workers will receive notice this week that they will lose their jobs next month. The layoffs are one of the biggest rounds in state history.

Intel Expansion Of Manufacturing Capabilities Expected To Take Years

Despite being headquartered in Santa Clara, California, Hillsboro, Oregon is where the main business of Intel’s semiconductor research and development is located.

Over 20,000 Oregonians are employed at the facility and Intel plans to expand its footprint in Oregon after being included in the Biden administration’s $8.5 Billion federal CHIPS Act funding.

Expanding semiconductor manufacturing capabilities has proved to be expensive and Intel spent tens of billions of dollars to upgrade, but will take years to develop to capacity. In the meantime, the company is looking to reduce expenses by $10 billion next year as it pursues a turnaround effort.

The company’s revenues have fallen by almost a third since 2021, and Intel is fighting to regain its position as a technology leader against rivals such as AMD, Nvidia, and Taiwan Semiconductor Manufacturing Co. who have moved faster while Intel has been falling behind in the advancement of artificial intelligence.

The semiconductor industry is one of Oregon’s economic drivers. Currently employing around 30,000 people in Oregon, the semiconductor is an economic driver in the state. Oregon is Intel’s biggest and most advanced site globally.

Intel Announces Broad-Based Cost-Saving Plan That Includes Reducing Staff

1,300 of the 23,000 workers who started the year with Intel will be permanently laid off from Intel’s 500-acre Hillsboro campus as part of a larger plan to cut costs following a $1 billion loss reported last year.

One of Oregon’s largest private employers, an Intel spokesperson said, on Tuesday that “These are the most difficult decisions we ever make, and we are treating people with care and respect.”

Several workers have already taken early retirement offers or buyouts and it is estimated that over 3,000 Oregon jobs will be eliminated if the company applies its cuts evenly across the business- including buyouts and early retirements.

The Intel spokesperson indicated that the changes support their long-term sustainable growth strategy.

In the federally required notice, Intel’s director of corporate people movement, James Warner, said the first separations are scheduled for 14 days commencing on November 15, this year.

Employees who are part of the layoff have already been notified or will get notice at least two months before their jobs are eliminated. Other Intel sites will also see big job cuts, but the details have not yet been released.

Tuesday’s 1,300 layoffs are unlikely to have a major effect in Oregon which has approximately 2 million workers and a 4.0% unemployment rate.