In the wake of recent layoffs, the Intel Oregon workforce is down to its lowest point in more than a decade, reports Oregon Live / The Oregonian. Worryingly, the newspaper’s sources have indicated that this isn’t the end for Intel's Oregon job cuts. Moreover, cuts as deep as this do not just affect Intel and its newly redundant staff; the Oregonian highlights the fact that the well-paid roles “helped buoy the whole state,” thanks to tax receipts and other factors.
Intel has a long and illustrious history in Oregon, but its inexorable growth now seems to have done more than just stall. This change in fortunes will be especially painful to the lives and plans of employees. Only a year ago, they would have been hearing and reading reports about a massive expansion in Oregon, with thousands more jobs.
With cuts of “at least 5,400 Oregon jobs since August,” according to the source, there are now 18,000 employees left in Oregon. Despite this massive cut in jobs, “Oregon will continue to play a critical role in Intel’s global operations, serving as the epicenter of our cutting-edge semiconductor research, technology development, and manufacturing,” Intel reportedly said in a statement on Monday.
Lip-Bu Tan’s "simple math" knows no mercy
Back in April, we first heard reports of recently installed CEO Lip-Bu Tan getting ready to swing his axe to cull 20% of the workforce for cost and efficiency savings. Sadly for Intel employees, they’d already faced a reduction of approximately. 15,000 positions last August.
In the new Oregonian report on job cuts, Tan is quoted as explaining his severe personnel pruning activity as “simple math.” Talking to employees, he noted that the combined ranks of Nvidia and TSMC had only a slightly higher headcount than Intel alone. However, both those rivals are far more profitable.
Impacts beyond Intel's campus
The Oregonian notes that the state is “heavily reliant on personal income taxes” to fund improved schools, public safety, and various other services available to state residents. Oregon actually modified the tax code to favor Intel’s business, to retain and attract increased investment. That seems to have paid off, until now.
With the swing in Intel's fortunes and employee tax receipts impacted, local officials are worried about Intel shifting from being an asset to a liability. However, these concerns may be unfounded. From the material shared in the report, 15,000 well-paid Intel employees still remain in the state. Moreover, there are hopes that many ex-employees will stay to boost economic prosperity in Oregon, perhaps investing in new projects and startups.
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