Intel Layoffs Hit Arizona: Billions in Federal Funding Wasted, Taxpayers Pay the Price

By Matthew Holloway |

Intel Corp. has announced a staggering reduction of 15,000 jobs across the United States, including nearly 400 positions at its Ocotillo campus in Chandler, Arizona. This decision comes amid claims by the Biden-Harris administration that the CHIPS and Science Act is enhancing the economy. Despite the expectation of potential job growth fueled by billions in taxpayer funding from the CHIPS Act, Intel is moving forward with these layoffs as part of a comprehensive cost-saving strategy.

The Phoenix Business Journal highlighted that Intel employs approximately 12,000 workers in Arizona. In a statement, the company emphasized the difficulty of these choices, stating, “These are the most difficult decisions we ever make, and we are treating people with care and respect.” The company aims to become leaner and more resilient amid shifting market dynamics, as it looks toward long-term growth.

In response to the job cuts, Arizona’s Democratic Governor Katie Hobbs confirmed that state resources would be mobilized to assist affected workers. Spokesman Christian Slater stated that the Governor’s Office is working to connect these individuals with support services, underscoring her commitment to job creation and economic resilience in the state.

Intel’s recent receipt of up to $8.5 billion in CHIPS Act funding has raised questions regarding their simultaneous layoffs. Notably, Governor Hobbs’s previous remarks about Intel’s expansion did not address the funding implications. Senator Mark Kelly’s office defended the federal support, asserting its critical role in maintaining American semiconductor production capabilities in the face of international competition.

Intel has faced considerable financial difficulties, reporting a loss of $1.6 billion. CEO Pat Gelsinger stated that the company needed to realign its cost structure and adapt its operational model to realities in a challenging market. The firm’s struggle has drawn political scrutiny, particularly from Republican Senate candidate Kari Lake, who linked the layoffs to broader economic issues under the current administration.

Amid these challenges, voluntary staff exits in September have already contributed to Intel nearing its intended job reduction figures. Gelsinger has repeatedly warned of additional tough decisions ahead as the company continues to navigate through a period of intense transformation.

Matthew Holloway is a reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.