Intel won't say how many cuts in Oregon
Wednesday, September 6, 2006 7:24 AM PDT
By Associated Press
Printable version
E-mail this articlePORTLAND, Ore. (AP) -- The effect of Intel Corp. layoffs on the Oregon economy were uncertain Tuesday after the computer chip maker -- the largest private employer in the state -- declined to say how it will distribute the job cuts across its international workforce.
Intel said it would eliminate a total of 10,500 jobs -- about 10 percent of its total employment -- by mid-2007.
The layoffs are a response to increased competition from rival Advanced Micro Devices Inc., analysts and economists said.
"I don't think this is part of the overall industry," said Jim Craven, spokesman for the Oregon chapter of AeA, formerly the American Electronics Association. "Most people think of it as more of an internal market segment competition."
Based in Santa Clara, Calif., Intel largest operation is in Hillsboro, with 17,000 employees on seven main campuses. The company has grown since 1976 into the largest private employer in the state, focusing on silicon wafer development and manufacturing, along with chip design.
Intel has already trimmed about 3,000 jobs through layoffs and the sale of smaller business units this year, leaving about 7,500 more jobs to eliminate by next year -- although the company said more than half of those jobs likely will be cut by the end of 2006.
Art Ayre, the state labor economist, said Oregon has seen some pretty large temporary layoffs in the past few years but has not experienced a layoff of this size for quite some time.
"At the present time the economy is doing reasonably well," Ayre said. But he added: "We might be moving into a slowdown period."
Oregon Employment Department figures show the state had nearly 60,000 high-tech jobs at the end of July, still trailing the peak of 72,800 high-tech jobs in January 2001. The state hit bottom at 53,800 high-tech jobs in January 2004.
In 1995, job growth led by Intel helped manufacturing eclipse the timber industry as the largest employer statewide.
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