Intel to cut 227 jobs at Rio Rancho plant; local leaders respond

RIO RANCHO — Intel Corp. will eliminate 227 positions at its Rio Rancho facility by September, according to a newly issued Worker Adjustment and Retraining Notification, bringing clarity to weeks of speculation over whether the New Mexico plant would be swept up in the company’s broader layoffs.

The news comes following the appointment of CEO Lip-Bu Tan, who announced nationwide cuts in April. It also follows a report from The Oregonian in June, citing a company memo, that Intel planned to lay off up to 20% of its factory workforce.

“I can’t say that it’s surprising that they’re having some moderate cuts here at the Sandoval County plant,” Sandoval County Manager Wayne Johnson said. “Obviously, we don’t want to see any cuts, but at the end of the day, Intel’s trying to work within its business model and be profitable as a corporation nationwide.”

In discussing the staff reduction, local business organizations stressed the company’s ongoing impact on the community and optimism moving forward.

“While any workforce reduction is unfortunate, this planned restructuring by Intel represents a minimal impact when viewed in the context of the company’s long-standing presence and ongoing investments in Rio Rancho,” said Jerry Schalow, president and CEO of the Rio Rancho Regional Chamber of Commerce. “We remain optimistic about the future and confident that Intel’s commitment to innovation and advanced manufacturing will continue to be a strong economic driver for our region.”

“It is always difficult when job losses impact members of our community,” said Fred Shepherd, president and CEO of Sandoval Economic Alliance.

However, he pointed to the company’s local growth in recent years.

“In 2021, Intel had approximately 1,800 employees when the company announced plans to invest $3.5 billion into this facility and add 700 new jobs,” Shepherd said. “Ultimately, Intel invested around $4 billion and created a net gain of approximately 1,100 jobs — providing 400 more jobs than initially announced and demonstrating a strong commitment to our region.”

Intel declined to share details on which positions are being affected. But, according to documents obtained by the Journal through an Inspection of Public Records Act request, the chipmaker began local layoffs on July 15.

Among the hardest-hit positions are manufacturing operations managers, module engineers and module equipment technicians, each facing double-digit cuts, according to the documents. Other roles, like process integration development engineers and facilities engineering managers, are also among the roles listed in the cuts.

“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” an Intel spokesperson wrote in an email Tuesday. “Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.

“We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”

The company employs roughly 3,100 New Mexico employees, according to its website, with the latest round of layoffs reflecting around 7% of cuts to its local workforce. Estimated compensation for the first quarter of 2025, including salaries, bonuses, taxes and benefits, totaled more than $101 million, according to a jobs report.

Intel’s decision to make cuts comes as pressure mounts within the competitive semiconductor industry, where rivals like Nvidia Corp. have climbed the competitive ladder and Intel has fallen behind.

Last year, Intel eliminated 15,000 jobs, though no WARN notice was filed with the state at the time.

Johnson, who previously told the Journal that Intel had not been in contact about Rio Rancho plant layoffs, said his department found out about cuts around the same time the WARN notice was issued.

“We’re hoping that the reorganization at Intel nationwide doesn’t overly impact the job picture here (in) Sandoval County,” Johnson said. “We don’t expect it to, but you never know. This is business. Hopefully this will be the last of the cuts that we see in New Mexico.”

Rio Rancho houses one of Intel’s 10 manufacturing sites worldwide. The local plant was recently expanded through a multi-billion-dollar investment for its Fab 9 factory, a facility used for 3D packaging technology.

Rio Rancho Mayor Gregg Hull said while it’s disappointing to see layoffs, he believes that Intel remains “firmly committed” to the New Mexico facility.

“The investment they just made with over $3.5 billion in this particular plant — they’re not walking away from that,” Hull said. “Their commitment is still very strong here in New Mexico, and we’ve gone through these bumps before.”

This marks New Mexico’s second WARN notice this year. In May, owners of the Lea County Correctional Facility near Hobbs shut down, laying off 203 employees.

The Rio Rancho layoffs are part of a broader reduction in the company’s workforce. Since January, the company has issued WARN notices for roughly 4,500 positions at facilities in California, Arizona, Oregon, Texas and New Mexico, according to WARNTracker.com.

Shares of Intel closed at $23.24 on Tuesday.

Both Schalow and Shepherd said their offices would be available to help employees affected by the cuts and looked to a positive future.

“The chamber stands ready to support impacted employees through workforce placement and job connection services, and we look forward to Intel’s continued role in shaping New Mexico’s technology ecosystem,” Schalow said.

“While the current restructuring efforts may affect some employees, we recognize that Intel New Mexico remains a vital part of the company’s broader strategy and future direction,” Shepherd said. “We are confident that the skills and trades these employees possess are in high demand and will be valuable to other local employers. We will continue working closely with Intel and our other local manufacturers to support their evolving needs and help ensure a strong economic future for our community.”