Intel deepens restructuring with 669 new layoffs, over 3,000 this year

Intel has cut a further 669 jobs in Oregon, bringing its total layoffs in the state to more than 3,000 this year, oregonlive reported, citing a filing with state workforce officials.

Most of the latest redundancies fall across Intel’s manufacturing sites in Hillsboro and Aloha, including more than 300 factory technicians. The filing, reported by local media on Thursday, underscores the pressure on Intel’s production arm as the company strives to regain ground in the global chip race.

Intel’s manufacturing struggles sit at the core of its challenges. The chipmaker has fallen behind rivals with more advanced process technology, leaving its products trailing competitors on performance and energy efficiency. The company has been racing to rebuild its manufacturing roadmap, but progress has been slower than hoped.

Intel expects about $52 billion in revenue this year, down sharply from $79 billion in 2021. Analysts say the deteriorating top line, combined with heavy investment demands in new fabs and process upgrades, is driving a more aggressive focus on cost-cutting.

Oregon, Intel’s largest and most strategically important workforce base, has absorbed the bulk of those reductions. The state serves as the centre of Intel’s advanced manufacturing and research operations, making the scale of this year’s cuts especially significant for the region’s technology economy.

The latest layoffs span factory technicians, engineers, project managers and research roles across the company’s Gordon Moore Park, Aloha and Jones Farm sites, according to the state notice.

Local industry observers say the reductions reflect the depth of Intel’s manufacturing reset. The company has pledged to execute an accelerated push back to leading-edge chipmaking, but the restructuring is likely to continue as it aligns staffing with its near-term production needs.

Intel has not indicated whether further job cuts are planned. With competitive and financial pressures mounting, analysts expect the company to pursue tighter operating discipline while continuing to invest heavily in next-generation manufacturing.