Intel has moved forward with its latest round of mass layoffs, with job cuts in some states much higher than originally anticipated.

According to a report from The Oregonian, Intel initially informed Oregon workforce officials of plans to cut more than 500 workers in the state. However, the figure has now been raised to 2,392, making it one of the biggest layoff rounds in Oregon’s history, the news outlet reported.

In Oregon, module equipment technicians, module development engineers, and module engineers are the job roles most affected by the cuts, with The Oregonian reporting that 412, 307, and 148 such workers have been let go, respectively. Process integration engineers in the state have also seen high double-digit job cuts, followed by yield development engineers, process integration and yield technicians, and manufacturing technicians.

Intel is the largest employer in Oregon, with around 20,000 workers in the state, with the job cuts currently taking place represent a workforce reduction of around 12 percent. However, unlike the layoff round that took place last year under former CEO Pat Gelsinger – which saw 15,000 workers cut from the company, around 3,000 of which were based in Oregon – the company is not offering buyouts this time round.

In total, Intel has so far announced cuts of at least 4,000 workers across the US, in Oregon, California, Arizona, and Texas, with more layoffs expected in the coming weeks. The chipmaker’s manufacturing site in Kiryat Gat, Israel, has also been impacted by the job cuts, with local media reporting that Intel is additionally considering shutting Fab 28 altogether.

A second Israeli fab had been planned following receipt of a $3.25 billion grant from the Israeli government, but the project was officially paused in mid-2024. Intel has also paused plans to build new chip fabs in Germany and Poland.

Intel trailing, but Tan believes there’s still a path to success

Earlier this month, OregonTech reported that new CEO Lip-Bu Tan told employees that the chipmaker was “not in the top 10 semiconductor companies,” adding that the company had to be “humble” and turning around its fortunes would be a “marathon.”

“Twenty, thirty, years ago, we are really the leader,” Tan reportedly told Intel employees during an internal company broadcast. “Now I think the world has changed.”

When approached for comment by OregonTech, a spokesperson for Intel said Tan was referring to the company’s market value, not its technological leadership.

However, Intel has struggled to compete with the likes of Nvidia and AMD, both of which have dominated the data center market since the generative AI boom in a way Intel has not.

In an effort to compete in the space, Intel first unveiled its Gaudi 3 AI accelerator in April 2024. However, on the company’s Q3 2024 earnings call, Gelsinger told analysts that uptake of Gaudi has been slower than anticipated and Intel had failed to meet its target of $500 million in revenue for Gaudi in 2024.

Tan reportedly echoed these sentiments on the broadcast, telling staff: “On training, I think it is too late for us,” adding that instead the company will focus on Edge and agentic AI.

Last week, GPU maker Nvidia became the first company in history to hit a $4 trillion valuation when its share price rose on the morning of July 9.