Intel's Oregon Workforce Hits 10-Year Low with More Job Cuts Ahead
The number of workers at Intel in Oregon has dropped to a 10-year low, with more layoffs still to happen, as per a report from Oregon Live / The Oregonian. It looks like the job cutting isn't over.
This drop is a big change for a firm that has grown a lot in this state for a long time. The report says Intel has let go of "at least 5,400 Oregon jobs since August," and now there are 18,000 workers left. Even with fewer people, Intel said, "Oregon will still be a key place for Intel's world work, as the heart of our top-grade chip research, tech work, and making."
Behind the Layoffs "Simple Math" and Efficiency Goals
The big job cuts come from trying to save money and be more efficient. The report quotes new CEO Lip-Bu Tan telling workers it's "simple math." He said that even though Intel's rivals, Nvidia and TSMC, have about the same number of workers as Intel, they make a lot more money. This follows a past cut of about 15,000 jobs in August last year.
Economic Impact on Oregon State Finances
These job cuts reach out from just Intel, making people worry about the money health of the state. The Oregonian's report points out that Oregon depends a lot on income tax from high-paid jobs like those at Intel to keep public work going. The state had changed its tax rules before to get more money from Intel, a plan that now faces hard times with fewer high-paid workers.
Even though local leaders are worried, the report says a good number of high-paid Intel workers are still there. There's hope that many of these ex-workers will stay in Oregon, maybe using their skills and money for new work and startups, which could help the local money scene for a long time.