Intel Corp. plans to cut nearly 400 jobs at its Ocotillo campus in Chandler, Arizona, as noted in a WARN notice. This reduction represents less than 4% of Intel's approximately 12,000 employees in the state. Companies typically issue WARN notifications when layoffs exceed 100 workers.
According to ABC 15, the job cuts at Intel are part of a global downsizing plan to eliminate 15,000 positions. This decision follows a $1.6 billion loss in the second quarter, a sharp drop from a $1.5 billion profit the previous year. Revenue also fell slightly, decreasing 1% to $12.8 billion from $12.9 billion.
Despite the layoffs, Intel received a significant boost earlier this year from the CHIPS and Science Act, which included an $8.5 billion investment expected to create 9,000 new jobs in Arizona. Additionally, the company secured an $11 million loan for developing its Arizona facilities.
In a statement obtained by 12 News, Intel commented on the job cuts, stating, "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. 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." This workforce reduction comes as Arizona prepares for a projected expansion in the semiconductor and skilled manufacturing industries.
