RIO RANCHO, N.M. — Intel Corp. announced plans on Tuesday to lay off 11 percent of its workforce – roughly 12,000 people – from the chipmaking giant’s global operations and to consolidate some of its plants.
It’s not yet clear how the cuts will affect Intel operations in Rio Rancho – or whether it is one of the ones on the chopping block – but the plant has already seen its numbers drop significantly in recent years with little new investment by Intel. And it continues to produce older chips that are less useful for today’s technologies.
The layoffs are part of a broad restructuring plan to stay competitive in the semiconductor industry as markets continue to move away from personal computers, which the company has dominated for decades, to mobile devices such as smartphones and tablets.
Intel now employs about 107,000 worldwide.
The restructuring plan includes a combination of voluntary and involuntary departures by employees, culminating in the full 12,000-worker reduction by mid-2017. Most affected employees will be notified in the next 60 days, although reorganization efforts will stretch into next year.