Intel’s latest wave of layoffs has sent tremors through Oregon’s tech ecosystem, with nearly 2,400 positions set to vanish across the state. This is nearly five times what the semiconductor giant initially indicated earlier in the week, as highlighted by Financial Express.
These cuts form part of a sweeping restructuring under the company’s new Chief Executive Officer (CEO), Lip-Bu Tan, and are among the most substantial in Oregon’s industrial history.
The repercussions extend well beyond Oregon. Intel has now confirmed plans to lay off close to 4,000 staff across the United States of America (USA), impacting its operations in California, Arizona, and Texas.
However, Oregon will shoulder the heaviest blow, particularly at Intel’s expansive Ronler Acres campus in Hillsboro, which alone will see over 1,500 roles axed. Before this round, Intel’s Oregon workforce stood at more than 20,000.
These layoffs arrive at a delicate moment for Oregon’s economy. Semiconductor jobs here average an annual pay of around $180,000, substantially higher than the state’s overall average. As Financial Express reports, analysts expect reduced consumer spending and a dip in tax revenues.
Meanwhile, Intel, which benefits from roughly $260 million in yearly tax incentives, could face heightened scrutiny if its promised expansions falter. Intel’s troubles reflect broader shifts in the chip landscape. The company once reigned as the top semiconductor manufacturer, but its dominance eroded over the past decade, particularly to Taiwan Semiconductor Manufacturing Co. (TSMC).
Its delayed pivot to artificial intelligence (AI) training chips — now largely cornered by Nvidia — has compounded its challenges. Acknowledging this, Tan recently told employees, “Twenty, 30 years ago, we were really the leader… Now… we are not in the top 10 semiconductor companies.”
The restructuring will see Intel withdraw from automotive chips, outsource marketing to Accenture, and slash one in five jobs in its Foundry division. Employees affected by the layoffs are set to receive 13 weeks’ pay, tenure-based extras, and a year of health insurance.