Intel Corporation is laying off 385 employees at its Chandler, Arizona campus, according to a Worker Adjustment & Retraining Notification Act (WARN) notice. The layoffs come as part of a companywide cost-cutting strategy following a $1.6 billion loss in the April-June quarter of 2024.
The company’s recent financial report highlighted a significant decline, with earnings falling from a $1.5 billion profit in the same quarter last year to a substantial loss. Revenue dropped slightly by 1%, from $12.9 billion to $12.8 billion.
“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 stated. “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.”
In March 2024, the Biden Administration announced an $8.5 billion investment in Intel through the CHIPS and Science Act, alongside an $11 million loan, aimed at creating 9,000 new jobs in Arizona. Despite this funding, Intel revealed in August a broad-based cost-saving initiative, including a 15% reduction in its global workforce.
The layoffs reflect Intel’s ongoing efforts to streamline operations and regain financial stability amid increasing competition and market challenges. The company has not disclosed whether further job cuts are planned in the near future.