Intel plans to cut local work force one-fifth: Layoffs should start by September

By TOM TREWEEK/OBSERVER STAFF REPORTER
Published on Wednesday, May 2, 2007 5:04 PM MDT

Less than eight months after announcing the company would cut 10,500 jobs worldwide, Intel has told its local employees another 1,000-plus will soon be laid off, cutting its Sandoval County workforce by about 21 percent.

Fab 11, a factory at Intel's Sandoval County plant, will end production of 200 mm chips, and there is currently nothing to take its place.

"We don't have any plans for Fab 11 at this time," said Intel spokesperson Liz Shipley.

Fab 11x, which already produces 300-mm chips, will be retooled for 45-nanometer chips, she said.

Fab 11 production is expected to finish at the end of August, when the first phase of layoffs will begin. Intel will continue to reduce its workforce until early 2008, Shipley said. There is not yet a final number of layoffs scheduled. Shipley said it could be "1,000 or more." Intel currently employs about 4,700 people, she said.

The affected positions will not be limited to Fab 11. Shipley said the staffing decrease will be site-wide and will involve several departments.

Intel is expecting some people to leave voluntarily. Shipley said there would be an enhanced severance package for those who chose to do so. Others, she expected, will stay for up to two months longer to seek other positions within Intel or at other companies. Intel offers training, job placement and may hold a local job fair for its employees, Shipley said.

Intel employees leaked news of the layoffs; there was no press release. Shipley said the company wanted to inform its employees before the news appeared in the media.

Intel speculated on these layoffs a few months ago but did not have the current level of detail. Last September, Intel announced the layoff of 1,000 managers and 9,500 employees worldwide after completing a lengthy efficiency study.

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