Mass layoffs at Intel will affect 2,000 jobs in California, Oregon and Arizona

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

Intel has begun massive 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, California-based company sent separate notices to the three states on Tuesday informing them of its plan to lay off about 1,300 employees in Oregon, 385 employees in Arizona and 319 employees in California.

(Related: Tech Giants Back Intel-AMD Alliance Fight for the Future of x86)

After publishing this article, CRN received a notice that Intel sent to the state of Texas stating 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 affects 50 or more employees in a 30-day period at a business location in the state.

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

Intel is expected to lay off thousands of workers after Gelsinger said in a mid-September update that the chipmaker has cut more than half of the 15,000 jobs slated to be cut through early retirement packages and voluntary buyouts.

“As part of the broad cost savings plan we announced in August, we are making the difficult but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we have ever made, and we treat people with care and respect,” the spokesperson said in a statement.

The job cuts come among other major changes Gelsinger outlined a month ago to improve the company’s profitability and competitiveness. The other changes included delaying the opening of new facilities outside the United States, making Intel’s contract chip manufacturing business 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 layoffs in both states are expected to begin on November 15. The company said employees received either 60 days’ notice before their separation or four weeks’ notice. that comes with nine weeks of pay and benefits “in lieu of further notice.”

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

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

Arizona’s WARN notice page said the 385 Intel employees laid off in the state were based at a plant in Chandler. An Arizona public records official had not provided Intel’s WARN notice to the state to CRN at the time of writing.

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

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

“Intel is and will remain a channel-oriented company. My first priority is to ensure we do everything possible to enable our partners to grow their businesses and I look forward to the work ahead,” Guzzi said in a statement last week.