Mass Layoffs At Intel Impact 2,000 Jobs in California, Oregon And Arizona

An Intel spokesperson confirms to CRN that the layoffs, disclosed on Tuesday, are part of the plan announced by Intel CEO Pat Gelsinger in August to cut over 15,000 jobs and reduce costs by more than $10 billion in response to worsening financial conditions.

Intel has begun mass layoffs as part of the chipmaker’s cost-cutting measures, impacting more than 2,000 jobs at locations in Oregon, Arizona and California.

The Santa Clara, Calif.-based company sent separate notices on Tuesday to the three states to inform them of its plan to lay off roughly 1,300 employees in Oregon, 385 employees in Arizona and 319 employees in California.

After the publication of this article, CRN received a notice Intel sent to the state of Texas saying that it plans to lay off 251 employees in Austin.

The notices are required by each state’s Worker Adjustment and Retraining Notification (WARN) Act when a layoff round impacts 50 or more employees in a 30-day period at a company site located in the state.

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

Intel is expected to lay off thousands of employees after Gelsinger said in a mid-September update that the chipmaker reduced more than half of the 15,000 jobs targeted for elimination through early retirement packages and voluntary buyouts.

“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 in a statement.

The job cuts are happening alongside other major changes outlined by Gelsinger a month ago to improve the company’s profitability and competitiveness. The other changes included the delay of new facilities opening outside the United States, turning Intel’s contract chip manufacturing business into an independent subsidiary and doubling down on its 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,” the Intel representative said.

In its WARN notices to the states of California and Oregon, Intel said the layoffs in both states are expected to begin on Nov. 15. The company said employees have either received a 60-day notice ahead of their separation or a four-week notice that comes with nine weeks of pay and benefits “in lieu of further notice.”

The roughly 1,300 employees laid off in Oregon were located at facilities in the unincorporated community of Aloha or the city of Hillsboro, a short drive from Portland, according to the company’s WARN notice with Oregon.

In California, 47 laid-off employees were based at a facility in San Jose while the other 272 workers were based at a facility in Folsom, according to Intel’s notices with the state.

Arizona’s WARN notice web page said that the 385 Intel employees laid off in the state were based in a facility in Chandler. A public records official with Arizona had not provided Intel’s WARN notice with the state to CRN by press time.

Earlier this month, Intel exclusively told CRN that it has appointed channel veteran Dave Guzzi as its new global channel chief and that it’s planning a new regional engagement model for partners among other channel changes coming in 2025.

The changes were made after Intel told staff in August that it would cut costs in the Sales and Marketing Group by more than 35 percent by reducing headcount and simplifying programs as part of its broader cost-cutting efforts, as CRN exclusively reported.

“Intel is and always will be a channel-centric company. My number one priority is to ensure we’re doing everything possible to empower our partners to grow their business and I look forward to the work ahead,” Guzzi said in a statement last week.