RIO RANCHO, N.M. (AP/KRQE) – Intel says it will cut 12,000 jobs — about 11 percent of its workforce — as it reorganizes to confront a decline in sales of personal computers. The company did not reveal how the announcement would affect the Intel facility in Rio Rancho.
The chipmaker said the cuts will include “voluntary and involuntary departures” from its operations around the world. Most of the affected workers will be notified in the next 60 days.
Intel said the cuts will provide about $1.4 billion in annual savings by the time the cuts are completed next year.
A local spokesperson released a statement that said, “Intel is evolving from a PC company to one that powers the cloud and billions of smart, connected computing devices. The restructuring initiative is designed to position Intel for success in these high growth areas with a strong foundation for long-term leadership, customer value, and growth.”
“We are not providing site-specific information at this time. However, the Intel New Mexico site continues to be one of our high-volume manufacturing facilities,” the Intel statement said.
Intel confirmed the current employee count in Rio Rancho is 1,900. That number is down significantly from its peak of more than 5,000 workers a decade ago.
KRQE News 13 attempted to get interviews or comments from the mayor of Rio Rancho and members of the Sandoval Economic Alliance. All declined to comment, as the fallout at the Rio Rancho campus is unclear.
The Office of Governor Susana Martinez responded with a statement.
“Intel is an international company with nearly 100,000 workers around the world. It is also an important business to our state, which is why our cabinet secretary of economic development meets with them on a regular basis. The governor is keeping a close eye on the situation as it develops,” said spokesman Chris Sanchez.
The company, based in Santa Clara, California, is a leading supplier of computer chips, but PC sales have been declining steadily in recent years. It’s trying to focus on its most profitable lines of business, which include making processors for data center computers and Internet-connected gadgets.
There has been no word on where the company will cut jobs.