(The Center Square) – Intel is reportedly scrapping 15% of its workforce and questions loom about whether Arizona jobs will be cut, as the company is declining to provide additional public details.
“We plan to deliver $10 billion in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15% of our workforce. The majority of these actions will be completed by the end of this year,” Intel CEO Pat Gelsinger said to employees in a letter this week.
Intel poured $32 billion toward semiconductor facilities in the state, and the federal government said its giving the company $8.5 billion toward its efforts in Arizona, Oregon, New Mexico and Ohio. The company also qualified for $11 billion in federal loans, and the United States Treasury Department Investment Tax Credit, according to a news release from March.
President Joe Biden even visited the Chandler plant in March to tout the CHIPS and Sciences Act assistance for the company.
“I’ve never been more optimistic about our future,” the outgoing president said at the time.
According to Intel’s website, the technology company employs 12,000 people in Arizona as of January. The Center Square reported last month that Intel kicked off a semiconductor apprenticeship program in collaboration with the state government in hopes to boost local talent for the complicated field.
“This apprenticeship represents much more than just another program, it’s a bridge for middle-class Arizonans to enter our state’s fast-growing semiconductor industry and launch a career with limitless potential,” Hobbs stated at the time. “I am proud to bring together government, industry, education, and community leaders to help launch this worthwhile collaboration.”
Hobbs’ office declined to comment on the matter, preferring to wait until it’s clear whether Arizona jobs will be affected.
ABC 15 Arizona reported that the layoffs will begin after asking for voluntary exits from the company first.