Intel Corp. will lay off more than 500 employees in Oregon beginning July 15, as part of a larger restructuring effort under newly appointed CEO Lip-Bu Tan.
Oregon facilities to see cuts starting July 15
According to a regulatory filing, the layoffs will affect workers at Intel’s facilities in Aloha and Hillsboro, resulting in 529 permanent job eliminations.
The move is part of a broader cost-cutting initiative that began in April, aimed at transforming Intel into what the company describes as a “leaner, faster and more efficient” organization.
The layoff is part of Intel’s plan to cut around 20% of its workforce, said a Bloomberg report.
Hillsboro, located just outside Portland, is home to some of Intel’s largest factories and research centers.
The company is the city’s largest employer, making the job cuts particularly significant for the local economy.
In a statement, the Santa Clara, California-based firm said:
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, and we will treat people with care and respect as we complete this important work.
New CEO tackles long-term strategic challenges
Lip-Bu Tan, who took over as Chief Executive Officer earlier this year, is leading Intel through a critical period as the company seeks to recover from years of declining market position.
Once a dominant force in the semiconductor industry, Intel has seen its technological edge erode while competitors such as Nvidia Corp. have capitalized on the rise of artificial intelligence computing.
Intel’s inability to keep pace with newer, more agile chipmakers has prompted calls for aggressive restructuring.
Tan’s leadership marks a shift in strategic direction, with a focus on operational efficiency, cost reduction, and technological reinvestment.
The layoffs are viewed as a key part of that strategy, aimed at reducing operating expenses and realigning resources around Intel’s core priorities.
The company in June announced changes to its leadership group to stage a comeback in its AI business. It hired executives from Apple and Google.
Intel also signed a partnership with Accenture to use AI to replace many of its marketing jobs.
Industry analysts see the move as an acknowledgment of the scale of challenges the company faces in reclaiming its leadership in high-performance computing and advanced chip manufacturing.
While the job reductions represent a painful step for affected employees and the communities surrounding Intel’s facilities, they also signal Tan’s intent to address internal inefficiencies and accelerate Intel’s transformation.
Intel’s next moves will be closely watched by investors and industry observers, particularly as the chipmaker navigates shifting market dynamics and ongoing competition in AI, cloud, and data center technologies.
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