Following layoffs in 2024, Intel looks to cut 15% to 20% of its factory workers in July. (Kaelyn Cassidy/Hillsboro News-Times)

The anticipated cuts to Intel’s workforce appear to be coming down the pike as the company braces to lay off hundreds of employees across its four Washington County campuses.

In a notice dated July 7, the California-based chipmaker announced it would permanently lay off around 529 employees, with the first separations scheduled to occur during a two-week period starting July 15.

According to Intel, all impacted employees were either notified at least 60 days ahead of the layoffs or given four weeks’ notice along with nine weeks of pay and benefits.

None of the affected workers are represented by a union, the company noted.

Broad workforce reductions

News of plans to scale back the company’s workforce first broke in April, with more details emerging in June when Intel announced it would cut between 15% and 20% of workers in its factory division. How those reductions would affect Oregon employees remained unclear until now.

This month’s layoffs are part of broader cost-trimming measures: Intel is expected to slash $500 million in operating expenses in 2025 and another $1 billion in 2026, in addition to a $2 billion reduction in capital expenditures.

And the company’s looming reductions are the latest in a series of cuts over the past few years. In August 2024, Intel announced it would eliminate 15,000 positions globally — including 1,300 in Oregon — as it looked to shave $10 billion from its annual budget. That brought last year’s total job losses to roughly 3,000. In 2022, the company laid off 12,000 workers.

The restructuring aligns with the strategy of recently appointed Chief Executive Officer Lip-Bu Tan, who has said he intends to reduce “organizational complexity” by thinning layers of management. Intel also plans to require most employees to return to the office four days a week starting in September.

Local impacts and industry questions

Intel’s recent cutbacks once again raise questions about the role of Hillsboro’s semiconductor industry and its centrality to the regional economy. The city has previously reported that 78% of Oregon’s semiconductor workforce is employed in Hillsboro and that 89% of the city’s manufacturing jobs are tied to high-tech industries.

But that reliance has grown increasingly precarious as Intel and other industry players continue to downsize. In 2024, Hillsboro-headquartered Lattice Semiconductor announced plans to trim back 14% of its global workforce.