Intel Begins Layoffs in Arizona as Part of Major Restructuring Effort

Intel Corporation, the largest domestic semiconductor manufacturer in the United States, is moving forward with significant job cuts as it tries to turn around its troubled business. The company has announced it will lay off 172 employees at its Chandler, Arizona campus, a site that has long been a cornerstone of Intel’s operations and a major employer in the region.

The layoffs are part of a broader reorganization aimed at streamlining Intel’s structure and improving its performance after a string of financial setbacks. In the first quarter of this year, Intel reported a net loss of $821 million, compared to a loss of $437 million in the first quarter of 2024. The company brought in $12.7 billion in revenue in the quarter, roughly flat compared to last year, highlighting the challenge of maintaining sales while costs remain high.

Intel spokesperson Eleonora Akopyan said the layoffs reflect the company’s goal of becoming “a leaner, faster, and more efficient company.” In an emailed statement, she emphasized that Intel leaders are focused on removing layers of complexity and empowering engineers to better serve customers. Akopyan added that all layoff decisions were made carefully and that the company is committed to treating affected employees with respect.

While Intel did not share specifics about which positions will be cut, reports suggest that thousands more jobs could be at risk nationwide. Media outlets have reported that the company has explored reducing its workforce by more than 20% as it confronts manufacturing delays, marketing missteps, costly acquisitions that fell short of expectations, and intense competition from rivals in artificial intelligence and mobile technologies.

At the same time, Intel continues to invest heavily in building new chipmaking capacity. In 2021, the company announced plans to construct two massive chip factories known in the industry as fabs at its Chandler site. The construction has become a defining feature of the area, with towering cranes reshaping the skyline.

Despite its struggles, Intel remains a critical player in the semiconductor industry and an important employer in Arizona, where about 12,000 people work for the company. With its second-quarter earnings due later this month, many are watching to see whether Intel’s restructuring will be enough to put it back on a stable path.