Intel Cuts 529 Jobs in Oregon Amid Restructuring

According to reports, Intel has commenced layoffs affecting several hundred employees in Oregon as part of its previously announced corporate restructuring initiative. The company, Oregon's largest private employer with over 22,000 workers, disclosed in a regulatory filing on July 7 that approximately 529 employees across four facilities in Aloha and Hillsboro will be impacted starting July 15.

This reduction is part of Intel's broader plan to cut its workforce by 20%. Following years of technological setbacks and declining sales, Intel's new CEO, Lip-Bu Tan, announced in April that the company would implement significant cost reductions and organizational reforms, including large-scale layoffs expected over the coming months.

In June, Intel informed employees of its extensive manufacturing division, Intel Foundry, about plans to reduce its staff by 15% to 20%. The cuts will affect thousands of technicians, engineers, and researchers. Intel Foundry, which plays a crucial role in developing successive generations of microprocessors, maintains a significant presence in Oregon.

Additionally, Intel intends to wind down its automotive technology business, resulting in most employees in that division being laid off. The company also plans to outsource its marketing operations to consulting firm Accenture, leveraging artificial intelligence to enhance operational efficiency and reduce expenses.

Despite ongoing challenges, Intel's stock surged more than 7% on July 8, continuing a recent upward trend fueled by market optimism about CEO Lip-Bu Tan's turnaround strategy and speculation over potential asset sales. Nonetheless, Intel's shares have fallen nearly one-third over the past 12 months.