(The Center Square) – Intel's layoffs are hitting the Grand Canyon State.
A notice for 385 layoffs at the corporation's Chandler facility was posted on Wednesday, as the company announced this summer that 15,000 workers would be laid off around the world.
"The Governor’s Office is already mobilizing rapid response resources at DES to connect affected workers with the resources they need to receive support and find new employment," Gov. Katie Hobbs' spokesman Christian Slater told The Center Square in a statement. "Ensuring that every Arizonan has access to good-paying jobs is a top priority for Governor Hobbs, and she will continue bringing together workers and businesses to navigate challenges, create jobs and build an economy that helps every Arizonan thrive."
The company, which plays a key role in the country's growing semiconductor industry, faced scrutiny following the layoff announcements, as it is in a preliminary agreement with the federal government for up to $8.5 billion in CHIPS and Science Act grants. The money has not been provided to the company yet, and $50 million in the funding is intended for the company's workforce development.
“This further underscores the importance of the CHIPS Act. American companies like Intel are facing unprecedented competition from China, but thanks to the CHIPS Act, we’re making sure Intel, and other companies can manufacture the most advanced chips right here in America—creating thousands of construction jobs, and generating even more good-paying, permanent technician jobs in Chandler and across the state that don’t require a four-year degree," a spokesperson for Arizona Sen. Mark Kelly's office told The Center Square in a statement. Kelly has been a key leader in semiconductor legislation.
The semiconductor industry continues to play a crucial role in Arizona, as Taiwan Semiconductor Manufacturing Company and other aspects of the supply chain set up shop or expand in the state.
In August, Hobbs expressed confidence in Intel after the news of the worldwide layoffs first broke, and the state government also fosters an apprenticeship program with the company. When Kelly was also asked about the layoffs in August, he expressed long-term optimism with the CHIPS Act and the potential for "tens of thousands of good paying jobs" in Arizona.
“They're expanding here. We're thrilled to have their expansion here. We're working with them on workforce initiatives to grow the skilled pipeline of workers that they need. We're continuing to do that,” Hobbs said at the time.
The technology company is also letting go of workers in Texas, California and Oregon. The company's Oregon and Arizona operations are two of the states that are expected to benefit from the federal funding.
In New Mexico, concerns about Intel layoffs despite its expansion in the state led the company to say that the workers let go were tied with "human resources," Rio Rancho Observer reported.
"As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce. These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth." Intel said in a statement to The Center Square when asked about the Arizona cuts.
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