Intel’s Chandler facilities await word on 12,000 job cuts

Intel Corp. has announced it will eliminate up to 12,000 jobs over the next year as part of a restructuring.

It is unclear how many jobs will be cut at Intel’s Chandler facilities. The company is one of the state’s largest employers with more than 11,000 workers.


Intel CEO Brian Krzanich explained the restructuring in an April 19 e-mail to employees. The plan is to accelerate the company’s evolution from a focus on making personal computers to one that powers the cloud and billions of smart devices.

Data centers and the so-called Internet of Things businesses are Intel’s primary growth engines.

These growth businesses delivered $2.2 billion in revenue growth last year, and made up 40 percent of revenue and the majority of operating profit, which largely offset the decline in the PC market.

“Our results over the last year demonstrate a strategy that is working and a solid foundation for growth,” Krzanich said. “The opportunity now is to accelerate this momentum and build on our strengths.”

While making the company more efficient, Intel said it plans to increase investments in the products and technologies that that will fuel revenue growth and drive more profitable mobile and PC businesses. 

Intel will eliminate 12,000 positions globally — 11 percent of employees — by mid-2017 through site consolidations worldwide, a combination of voluntary and involuntary departures, and a re-evaluation of programs. 

The job cuts will save Intel about $750 million this year.

Most employees will learn over the next 60 days whether their job will be cut.