Intel to cut 227 jobs at Rio Rancho plant, ending weeks of speculation

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.”

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 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 Worker Adjustment and Retraining Notification (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, down 20 cents but nearly $10 off their 52-week high.

Disappointed by the news, officials from the Rio Rancho Regional Chamber of Commerce and the Sandoval Economic Alliance said Tuesday they stand ready to support affected employees by offering assistance through their offices.

“We are confident that the skills and trades these employees possess are in high demand and will be valuable to other local employers,” said Fred Shepherd, president and CEO of the Sandoval Economic Alliance. “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.”

Rio Rancho Observer Editor Tracy Goldizen contributed to this report.