Intel is planning to lay off more than 500 employees in Oregon (where its largest site in the world is located) this month. The company will permanently eliminate 529 positions across four facilities in Washington County (including campuses in Aloha and Hillsboro), reports Bloomberg (citing a recent WARN notice filed with state authorities). The layoffs are scheduled to begin during the two-week period starting July 15, 2025.
The company, which is one of Oregon’s largest private employers, currently has around 20,000 workers in the state. The upcoming layoffs will hit all major campuses in Oregon and several business areas, including around 300 engineering roles. However, the semiconductor giant is said to have taken steps to support affected employees, including providing at least 60 days’ notice where required or severance packages for those who do not receive the full notice period.
Meanwhile, some experts believe that the latest round of job cuts could also impact Intel’s eligibility for up to $115 million in state economic incentives, which are tied to meeting job creation and retention targets. Last month (June 2025), the company reportedly planned to eliminate over 200 employees in California. Recent reports also suggest that the firm informed officials in Arizona that more than 100 jobs will be cut there as well.
These job cuts are part of a broader global plan that Intel announced in April 2025 to reduce its factory workforce by 15% to 20%. That reduction could affect more than 10,000 employees worldwide. According to the chipmaker, the move is aimed at simplifying its manufacturing organization and improving efficiency as it works to compete more aggressively in the semiconductor and AI markets.
As part of its cost-cutting strategy, the Santa Clara-headquartered company has set goals to reduce its operating expenses by $500 million this year and another $1 billion in 2026. It also plans to cut $2 billion in capital expenditures. These efforts are intended to stabilise the company’s finances and refocus resources on core areas like manufacturing technology and chip innovation.
Since taking over as CEO earlier this year, Lip-Bu Tan is said to have focused on making the company more efficient by reducing layers of management and cutting down on bureaucracy. Even internal messages from Intel’s manufacturing team reportedly indicated that the layoffs are ‘difficult but necessary’. According to the company, these job cuts are essential to streamline operations and eliminate barriers that hinder decision-making and productivity.
The layoffs come amid growing financial pressure on the company. Intel reported a net loss of $821 million in the first quarter of 2025. The company has been struggling to keep up in the fast-changing chip industry, especially in AI hardware, where rivals like Nvidia are leading.
