Intel To Cut About 5000 Jobs Company Wide

From reuters “Intel to reduce global workforce by five percent in 2014

Intel Corp plans to reduce its global workforce of 107,000 by about 5 percent this year as the chipmaker, struggling with falling personal-computer sales, shifts focus to faster-growing areas, a company spokesman said on Friday.

The announcement, equivalent to over 5,000 positions, comes a day after Intel posted a fourth-quarter earnings report that did little to dispel concerns about a slowing PC industry.

“This is part of aligning our human resources to meet business needs,” spokesman Chris Kraeuter told Reuters on Friday.

The job reductions may include early retirement, attrition and other options, Kraeuter added. He declined to say whether details of the changes had been announced internally.

I predict more layoffs and not just in New Mexico and it sounds like they will be in the first quarter of 2014.

In its report on Thursday, Intel forecast March-quarter restructuring charges of $200 million, a portion of which could be earmarked for severance pay.


Intel Announces Layoffs And A Plant Closure

Yesterday Intel announced that it’s closing the Massachusetts fab 17 affecting 700 employees, according to the Boston post “Intel will close Mass. plant, cut 700 jobs“. Today Intel announced that it’s “redeploying” 400 people at it’s Rio Rancho Fab11x plant according to the Albuquerque Journal “Intel cutting 400 positions from Rio Rancho plant“.

“Due to a shifting market, we are making some difficult business decisions. Specifically, in New Mexico, we have notified employees of a phased process of redeploying up to 400 positions,” company spokeswoman Natasha Martell Jackson said in an email.

The company said it is offering Rio Rancho employees jobs at other Intel locations, buyouts and severance packages to achieve the workforce reduction. Once it becomes clearer how many are willing to take the various offers, the company said it will be able to offer more detail on the reduction.

In March of 2009 Intel had layoffs and I wrote “Planning For Loosing My Job And Extended Unemployment” when the Rio Rancho site laid off 200 people.

I survived that layoff and wrote “Intel’s New Mexico Site Layoffs, One Week Later“. I don’t know if I will survive this one.

A few more articles from The Albquerque Journal “Intel plant in Rio Rancho cutting 400 jobs” and “City reacts to Intel’s job cut announcement“.

HP In Alpharetta Costs Rio Rancho Jobs

HP Facility in Rio Rancho, NM

In 2009 HP took the jobs from Colorado Springs to open a customer support center in Rio Rancho. HP is taking 200 of those jobs and moving them to Alpharetta, Georgia. From the Rio Rancho Observer “HP cutting 25% of local workforce“.

Hewlett-Packard is moving almost a quarter of its Rio Rancho positions to Georgia.
HP spokesman Michael Thacker said the corporation is moving about 200 local jobs in the Customer Solution Center to Alpharetta, Ga. The announcement was made Monday.
Rio Rancho employees may or may not move with their jobs, he said. HP will decide who moves and keeps their jobs, but Thacker said specifics weren’t available yet.
Mayor Tom Swisstack said the positions would be moved by Oct. 31.
“That’s a hard hit, a hard transition for the city,” he said. “Their average jobs paid about $50,000 a year.”

HP will have to pay the city as part of a clawback provision.

HP must pay a penalty each year it fails to meet its employment requirement from now until the end of the 15-year agreement. The size of the penalty is determined by multiplying the average shortfall throughout the year by the annual value of the incentives.
For example, if HP maintains its current level of 860 full-time equivalent employees this year, it will owe the city $53,715.08 next January.

HP will have to pay Rio Rancho roughly the cost of a yearly salary for one employee. I’m sure that will be covered by one of HP’s layoffs.

What’s bad for Rio Rancho is good for Alpharetta. At no time has HP actually created any new jobs.

50 Layoffs At Intel Rio Rancho


There were 50 people laid off at the Intel Rio Rancho site on Monday according to New Mexico Business Weekly. They were part of the CS group.

“The new layoffs will affect corporate service groups that have responsibilities for overseeing facilities and operations,” Shipley said. “The layoffs announced last month are more specific to our manufacturing groups.”

These layoffs were announced in November of 2008 before the 100 – 200 layoffs were announced but not widely reported. So far no one I know was let go but I haven’t heard from everyone yet. My thoughts go out to anyone who was let go.

Planning For Loosing My Job And Extended Unemployment


The current recession is like nothing ever experienced since The Great Depression. The semi-conductor industry is getting hit hard and I’m concerned that I could loose my job. It was the beginning of January that my employer said they will not need to cut jobs. At the end of January Intel announced plant closures and layoffs.

I can only speculate but I think these closures were going to happen at some point. They are just occurring earlier than were originally planned. Intel had already been slimming down for the last several years. The 1000 lay offs in the manufacturing sites were a surprise and maybe they were expecting those position to be eliminated though attrition. The site I work at is reducing 100 to 200 people.

A little over two years ago Intel cut jobs here in Rio Rancho when they merged factories and elimated the 200mm factory. This happened when the economy was booming. Then, I was very unprepared to loose my job. I had significant debt, little savings and no plan in the event that I lost my job. That was a very stressful time because the whole process lasted 6 months and I didn’t know if I would have a job or not. In the end, it turned out to be a whole lot of drama for nothing as I was never at risk for losing my job.

That whole ordeal taught me a lesson and I decided that I never wanted to be in that position again. Since then I have cut all my debt except for my mortgage and have started saving and building an emergency fund (I still have a much more to save before I make it to a years salary).

The economy seems to be getting worse. I fear Intel will have no choice but to cut more jobs to remain profitable as semiconductors sales drop. I could still get redeployed, the fancy term Intel uses for “we eliminated your job but if you can find another job in the company go for it. There aren’t any.” What happens If I do get laid off? Business Week says Albuquerque is one of the best cities to ride out the recession. I’m not sure I believe that and have started to plan for long term unemployment, a year or more.

Besides my savings I won’t be immediately without money. Not only do I have accumulated vacation and absent time that I can cash in, it’s very likely I will received at least three months of severance pay, maybe more due to my long service with the company. After the severance pay runs out I could draw on unemployment for a while. I have company stock and although it’s lost significant value in the last few months the stock sale could produce enough money to live off of for several months. Finally I could pull money from my 401K if I absolutely needed cash.

I will need to cut costs where I can. A few of the major expenses I can think of:

  • Good bye satellite tv. Ironic since I will have plenty of time to watch it. I may replace it with a much cheaper Netflix plan, if I find I have time to watch movies. I still have my Apple TV and uh… bittorrent.
  • I might eliminate the data plan from my iPhone. If I find I am at home most of the time I don’t see why I would need it much. I won’t eliminate my internet service. I already have a fairly inexpensive plan and using the internet will be needed for job searching.
  • Since I won’t be at work, I will stop going out for breakfast and lunch. I will need to monitor my food budget much more closely. Now I buy whatever I want without much regard for costs. Maybe I will become one of those extreme coupon clippers.
  • My 1997 Ford Ranger is paid for and in good conidion. I recently reduced the insurance on it. Assuming I’m unemployed for more than a few months, I would plan to ride my bike around town to reduce the chance that my truck would have problems. If I did have problems with my truck I am more than capable of making repairs myself. I could pay for repairs with a credit card and make the minimum payments if I had to have someone else fix it.
  • I’m not sure there’s much room for reducing energy costs. I already have the thermostat aggressively controlled by the home automation computer and I don’t use that much energy by myself.
  • Today if I want something, I put it on my credit card and buy it. If I want to travel somewhere I go. I do carefully budget these expenses so that they are paid for at the end of the month. It is pretty easy to do when I have steady income. If I get laid off and a new iPhone comes out, it’s going to take quite a bit of will power to not buy it.

If I am unemployed, I am not going to sit around and feel sorry for myself. In fact it’s an opportunity to get some things done that I haven’t had time to do.

  • I have bunch of junk that I need to sell and or donate that I haven’t been able to sort out.
  • I have a number of projects around the house I can work on that cost little or no money. I also can scour Craigslist for materials.
  • I have my iPhone and Mac OS programming to practice.
  • I will be blogging a lot more.

I think there will be some jobs out there, they just wont pay nearly as much as what I make now. If I have to I will work for minimum wage at the local pizza place. I could survive off that little money and still make the house payment. Who knows, I might actually enjoy it.

Unlike the last time I went through lay offs, I am not stressed about loosing my job this time. Sure it won’t be easy and it helps that I don’t have a family to care for. I will have to make some lifestyle changes. I have a plan and I am prepared for what ever comes along.

Work. Work. Work. Work. Work.

After the layoffs my job changed some. I am no longer on compressed work week and moved to first shift (not my choice). I lost pay in the process. I also am busier and have more responsibilities than before..

I am thankful to have my job.

I’ve got plenty of things going on, but not in the mood to write about it. Hopefully things change in a while.

Intel's New Mexico Site Layoffs, One Week Later


I hesitate to blog about work, thinking it will get me in trouble. The most pressing issue in the last month, maybe the last 6 months, has been the layoffs at work, New Mexico’s Intel site in Rio Rancho. Last week everyone got their “message”, either placed in the same position, placed in another position, Not placed with redeployment or just not placed. I was placed with some changes to my current position.

I was prepared both mentally and financially to be laid off. My years of employment at Intel would have provided me with several months of pay. The state is helping everyone find jobs (you know, our Governor is running for President). There was also the chance of going to school. I know, I should be grateful that I have a job particularly since Intel pays so well. Especially for New Mexico. But there were some benefits to being laid off and I am ready for a new career. Or that’s what I have convinced myself leading up to last week. Not to mention that the whole process left a bad taste in my mouth.

There is no good way to do a layoff. There seems to be bad ways to do layoffs. The common way, it seems to me from talking with others who have gone through layoffs at other companies, is that people are suddenly missing one day without warning. You show up to work and a bunch of people are no longer there. Intel’s way was different, it was a process. I could go on and on and on about this, but I will leave it at this for now. Since I still have a job, I want to keep it and stay out of trouble.

The whole reason for these layoffs, which has been widely reported, is that Intel is moving from 200mm to 300mm wafer sizes. There are two factories here, a 200 and 300 one. Merging them together with all the wonders of automation in the 300mm factory means you need less people to run it. New Mexico didn’t have the only 200mm factory, all other factories like this should pay attention to what happened here.

It’s good that I have a job, at least I can focus on other things that don’t involve looking for a job. I paid off my debt in preparation, that was also a good thing. This next year should bring along some changes, time to hold on for the ride.

Related: June 30, 2006: Intel — will it, or won’t it?