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Intel reports 84 layoffs in California

By Mike Rogoway, The Oregonian
Published: November 29, 2016, 10:59am

Portland — Intel has notified the state of California it plans to lay off 84 people in Santa Clara, home to its corporate headquarters, at the end of the year.

Online tech journal TechCrunch reported earlier this month that Intel is making cuts to its wearable computing group in response to poor results. Intel said in an email Monday evening that the pending job cuts are related to the company’s ongoing restructuring, but did not say whether they’re focused on the wearables operation.

Intel did not say whether it plans fresh cutbacks in Oregon, its largest site. The company laid off 784 Oregon workers last spring and many hundreds elsewhere, the first step in a broad set of job cuts that also included buyouts and early retirement offers.

Oregon officials have not reported a new layoff notice from the company, but they might not receive one if any cutbacks here did not meet a federal reporting threshold.

The world’s largest chipmaker is restructuring to prepare for a long-term decline in its core market, selling microprocessors for PCs and laptops. Intel initially said it planned to eliminate 12,000 jobs worldwide by the middle of 2017, but in its last quarterly report the company said its restructuring had already affected 15,000 employees.

“These reductions are in conjunction with our effort to re-balance our workforce to align to strategically important areas in the data center, Internet of Things, and memory businesses,” the chipmaker wrote.

Intel has evidently continued hiring for new positions even as it eliminated many jobs — total headcount is now 106,000, down only 6,000 from when the restructuring began in April.

Despite steady decline in demand for PCs, Intel’s business remains on stable footing thanks to strong growth in data centers, which rely on Intel chips to run their powerful servers. Intel forecasts annual sales of nearly $59 billion this year, up more than 6 percent from 2015.

Update: This article has been updated with a brief response from Intel.

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