Intel has announced mass layoffs impacting more than 2,000 employees in Oregon, Arizona, and California as part of a larger effort to reduce costs and streamline operations. The job cuts are part of a broader plan to eliminate over 15,000 positions and save more than $10 billion, a strategy outlined by CEO Pat Gelsinger in August 2024.
The layoffs affect approximately 1,300 employees in Oregon, 385 in Arizona, and 319 in California. Intel began notifying affected employees in October, with layoffs scheduled to take effect on November 15, 2024. Impacted workers will receive either a 60-day notice or a four-week notice with nine weeks of severance pay and benefits.
“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,” an Intel spokesperson said. “These are the most difficult decisions we ever make, and we are treating people with care and respect.”
Intel had already eliminated more than half of the targeted job cuts by mid-September through early retirement packages and voluntary buyouts. The company is also delaying the opening of new facilities outside the U.S. and restructuring its contract chip manufacturing business into an independent subsidiary.
“These changes support our strategy to become a leaner, simpler, and more agile company as we position Intel for long-term sustainable growth,” the spokesperson added.
The layoffs come as Intel faces worsening financial conditions and increasing competition in the semiconductor industry. The company aims to restructure and focus on its core x86 strategy while optimizing costs for future growth.