Intel to cut over 500 jobs in Oregon as layoffs expand nationwide
The layoffs are part of CEO Lip-Bu Tan's aggressive plan to revive the Silicon Valley giant after years of losing ground to competitors in the semiconductor space.
ADVERTISEMENT
Intel Corp. is set to lay off more than 500 employees in Oregon, marking a major step in its ongoing restructuring effort under newly appointed CEO Lip-Bu Tan, reports Bloomberg.
The company disclosed in a regulatory filing that 529 positions will be permanently eliminated from its Aloha and Hillsboro sites starting July 15, as part of a sweeping plan to reduce operating expenses and streamline operations, the report added.
Also Read: Microsoft layoffs: Xbox executive suggests laid-off workers turn to ChatGPT for career advice
The Oregon layoffs follow a recent announcement of 107 job cuts at Intel's Santa Clara headquarters in California.
While the company has yet to confirm the full scale of its workforce reduction, sources familiar with the matter estimate the cuts could affect more than 20% of Intel's global staff, according to the report.
In a statement, Intel said the job cuts are designed to help the company become "a leaner, faster and more efficient company."
The chipmaker added, "Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We are making these decisions based on careful consideration of what's needed to position our business for the future."
The layoffs are part of CEO Lip-Bu Tan's aggressive plan to revive the Silicon Valley giant after years of losing ground to competitors in the semiconductor space. Once a dominant force in chip manufacturing, Intel has been outpaced by rivals such as Nvidia, which capitalized on the recent surge in AI computing demand.
Tan, who took the helm in April, has pledged to reinvigorate Intel's innovation engine while trimming excess layers of bureaucracy.
Hillsboro, a suburb of Portland and home to some of Intel's largest factories and R&D centres, will be significantly impacted. As the city's largest employer, the layoffs are expected to ripple across the local economy, the report added.
