Cuts equate to about 4% of tech giant's total statewide workforce
Intel is laying off hundreds of workers in Arizona as part of the company's "cost cutting measures" it announced in August.
Intel Corp. is laying off hundreds of workers in Arizona as part of the chipmaker’s overall plans to cut 15,000 jobs globally.
Santa Clara, California-based Intel (Nasdaq: INTL) on Wednesday filed a Worker Adjustment and Retraining Notification — or WARN notice — with the state of Arizona announcing plans to cut 385 jobs at its Ocotillo campus in Chandler. The job cuts represent fewer than 4% of the 12,000 workers it employs in Arizona.
Arizona companies with 100 or more employees are typically required to file WARN letters with the state ahead of mass layoffs or plant closings.
Intel's job cuts will add hundreds of skilled workers to the job pool at a time when Arizona is racing to prepare its workforce for an expected explosion of growth in its semiconductor and skilled manufacturing industries.
The layoffs in Arizona and across the country were expected as part of cost-cutting measures Intel announced in August after the company reported a $1.6 billion loss in the second quarter.
“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,” Intel said in a statement. “These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
Intel began eliminating high-profile jobs in Arizona on Tuesday, although the extent of the local layoffs was not yet known at that time.
Jennifer Sanchez, Intel's Arizona community affairs manager, posted Tuesday on LinkedIn that her job was eliminated as part of the cuts and that her last day with the company would be Nov. 15. Cori Crenshaw, Intel's US social media content lead, also based in Chandler, confirmed on LinkedIn that her position was cut.
In addition, Intel filed a notice with the state of Oregon on Oct. 15 indicating plans to cut 1,300 jobs there, the Portland Business Journal reported. The company also filed WARN notices in California, saying it would lay off 319 workers at facilities in San Jose and Folsom, pushing the total number of U.S. employees impacted to more than 2,000.
In a letter submitted to the state of Oregon, Intel said it provided impacted employees with at least four weeks notice and that they will receive nine weeks of pay and benefits.
Intel did not respond to a request for comment on the types of positions eliminated at its Ocotillo plant, nor when they will occur. The Phoenix Business Journal has requested a copy of the WARN notice letter from the state of Arizona.
“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
The layoffs come as Intel was awarded $8.5 billion in direct funding via the CHIPS Act to support the company’s semiconductor advanced packaging and manufacturing facilities in Arizona and three other states.
Once loans and tax credits are considered, Intel could receive a package valued at more than $40 billion, some of which would go toward supporting the company’s $32 billion expansion of its Ocotillo campus.
The White House plans to finalize discussions with semiconductor companies about CHIPS Act grants and begin disbursements of federal funds by the end of the year, a senior U.S. Department of Commerce official told the Business Journal in August.
Intel is laying off hundreds of workers in Arizona as part of the company's "cost cutting measures" it announced in August.
Intel Corp. is laying off hundreds of workers in Arizona as part of the chipmaker’s overall plans to cut 15,000 jobs globally.
Santa Clara, California-based Intel (Nasdaq: INTL) on Wednesday filed a Worker Adjustment and Retraining Notification — or WARN notice — with the state of Arizona announcing plans to cut 385 jobs at its Ocotillo campus in Chandler. The job cuts represent fewer than 4% of the 12,000 workers it employs in Arizona.
Arizona companies with 100 or more employees are typically required to file WARN letters with the state ahead of mass layoffs or plant closings.
Intel's job cuts will add hundreds of skilled workers to the job pool at a time when Arizona is racing to prepare its workforce for an expected explosion of growth in its semiconductor and skilled manufacturing industries.
The layoffs in Arizona and across the country were expected as part of cost-cutting measures Intel announced in August after the company reported a $1.6 billion loss in the second quarter.
“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,” Intel said in a statement. “These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”
Intel began eliminating high-profile jobs in Arizona on Tuesday, although the extent of the local layoffs was not yet known at that time.
Jennifer Sanchez, Intel's Arizona community affairs manager, posted Tuesday on LinkedIn that her job was eliminated as part of the cuts and that her last day with the company would be Nov. 15. Cori Crenshaw, Intel's US social media content lead, also based in Chandler, confirmed on LinkedIn that her position was cut.
In addition, Intel filed a notice with the state of Oregon on Oct. 15 indicating plans to cut 1,300 jobs there, the Portland Business Journal reported. The company also filed WARN notices in California, saying it would lay off 319 workers at facilities in San Jose and Folsom, pushing the total number of U.S. employees impacted to more than 2,000.
In a letter submitted to the state of Oregon, Intel said it provided impacted employees with at least four weeks notice and that they will receive nine weeks of pay and benefits.
Intel did not respond to a request for comment on the types of positions eliminated at its Ocotillo plant, nor when they will occur. The Phoenix Business Journal has requested a copy of the WARN notice letter from the state of Arizona.
Job cuts part of company's 'structural and operating realignment'
In a letter to employees in August, Intel CEO Pat Gelsinger said the company would undergo a "structural and operating realignment" consisting of headcount, operating and capital expense reductions, which are expected to deliver more than $10 billion in cost savings by 2025 and enable the company to "sustain its larger growth strategy."“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote. “Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
The layoffs come as Intel was awarded $8.5 billion in direct funding via the CHIPS Act to support the company’s semiconductor advanced packaging and manufacturing facilities in Arizona and three other states.
Once loans and tax credits are considered, Intel could receive a package valued at more than $40 billion, some of which would go toward supporting the company’s $32 billion expansion of its Ocotillo campus.
The White House plans to finalize discussions with semiconductor companies about CHIPS Act grants and begin disbursements of federal funds by the end of the year, a senior U.S. Department of Commerce official told the Business Journal in August.