ECONOMY

Intel layoffs in Chandler to top 500

Ryan Randazzo
The Republic | azcentral.com
  • Intel plans 560 job cuts at two Chandler facilities
  • The layoffs are part of 12,000 cuts worldwide announced last week
  • Individual workers in Chandler will be notified by Friday
Intel Corp. will lay off 560 workers in Chandler, including at the Ocotillo Campus, shown here.

Intel Corp. will lay off 560 people in the city of Chandler, according to a letter the chip maker sent city officials Monday.

The company will lay off 312 at its Intel Chandler, 5000 W. Chandler Blvd., and 248 at Intel Ocotillo, 4500 S. Dobson Road, according to the letter.

The affected employees will be notified by Friday and the terminations will be effective May 31, after which the workers will get six weeks of pay and three months of COBRA health coverage. Additional benefits, including payment based on years of service, are available for those who sign a release agreement, according to the letter.

“Intel and Chandler have a long, mutually beneficial relationship built through many years of success and working together. As our largest employer, Intel continues to have a large presence in Chandler, and we are confident in their commitment to the community," Matt Burdick, Chandler communications and public-affairs director, said Tuesday. "Intel is an important part of the technology and advanced business-service industries present in Chandler.”

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Intel Corp. announced a week ago it will lay off as many as 12,000 employees worldwide as it shifts away from the personal-computer market and more toward data storage and smart devices.

Intel is the seventh-largest employer in the state with 11,300 employees here. Its Chandler fabrication facilities are a major driver of the economy in the East Valley.

Intel CEO Brian Krzanich broke the news to employees in an email last Tuesday.

The cuts will be made by consolidating sites, voluntary and involuntary departures, and a "re-evaluation of programs," according to Intel.

The company's two campuses are Intel Chandler, which opened in 1980, and Intel Ocotillo, which became operational in 1996.

Intel expects the program to deliver $750 million in savings this year and an annual run-rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.

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