Struggling Intel to Lay Off Thousands in 3 Western States

Intel layoffs are impacting over 2,000 employees in Arizona, California and Oregon.

In August, the chipmaking giant announced planned layoffs along with its disappointing second-quarter earnings. The Intel layoffs will impact 15% of the company’s workforce, which totals about 110,000. In all, expect 15,000 workers to lose their jobs as part of a cost-reduction plan.

Most of the employees will lose their jobs by the end of the year.

According to Worker Adjustment and Retraining Notification (WARN) notices, Intel is shedding 1,300 employees in Aloha and Hillsboro in Oregon, 319 workers in San Jose and Folsom in California, and 385 workers in Chandler, Arizona.

Look for the first Intel layoffs to occur during a 14-day period starting Nov. 15. The company expects them to be permanent.

Intel Layoffs Part of New Operating Model

“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” Intel CEO Pat Gelsinger said when announcing the company’s second-quarter earnings. “Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies, while accelerating our IDM 2.0 transformation. These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”

Related:Recent Tech Layoffs: 2024 Q1 Tracker

Intel's Pat Gelsinger

In August, Intel announced a series of initiatives to create a “sustainable financial engine that accelerates profitable growth, enables further operational efficiency and agility, and creates capacity for ongoing strategic investment in technology and manufacturing leadership.” These include structural and operating realignment across the company, headcount reductions, and operating expense and capital expenditure reductions of more than $10 billion in 2025 compared to previous estimates.

The last Intel layoffs, announced last December, meant more than 300 workers in California started 2024 unemployed. This impacted 76 workers in Santa Clara and 235 workers in Folsom.

Intel's stock price is down 55% this year as some of its rivals − notably Nvidia − have had more success and stolen the headlines with advancements in artificial intelligence.