Intel is preparing to eliminate more than 500 positions in Oregon as part of a sweeping reorganization that may impact up to 20% of its global staff. The layoffs are scheduled to commence on July 15. This development comes on the heels of a previous notification in California, where 107 employees at the company’s Santa Clara headquarters were recently informed of impending job cuts.
In a statement, the company explained that the job cuts in Oregon are part of a larger effort to transform into a more streamlined, agile, and performance-driven organization. It added, “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
Reports indicate that Intel is set to cut 529 jobs across its Hillsboro and Aloha sites. This move follows a previous wave of layoffs in California, where 107 staff members were already dismissed. The job reductions are part of a broader reorganization led by newly appointed CEO Lip-Bu Tan, who is focused on streamlining operations and boosting overall agility and productivity within the company.
Intel has reportedly stated that these moves are part of a wider effort to transform into a “leaner, faster, and more streamlined organization.” The restructuring includes cutting down on management layers and empowering engineers with greater decision-making authority.
The layoffs will impact several critical positions, including chip architects, cloud software engineers, and specialists in physical chip design. Additionally, a number of high-ranking executives, such as a Vice President in the IT division, are also expected to depart.
In 2024, Intel posted a staggering $19 billion loss as competitors like TSMC, AMD, and NVIDIA surged ahead with more efficient and affordable chip technologies. As a result of declining earnings and evolving market demands, the company has paused its expansion plans for fabrication facilities in Ohio, Germany, and Israel.
