One of Oregon’s largest private employers told the state Tuesday it’s permanently laying off 1,300 workers.

Chipmaker Intel has its headquarters in Santa Clara, Calif., but the heart of its semiconductor research and development is in Hillsboro. The company employs more than 20,000 Oregonians and has vowed to expand its footprint in the state, winning the promise of state and federal CHIPS Act funding.

But expanding semiconductor manufacturing capabilities is expensive. The company is spending tens of billions of dollars now for upgrades to its development capacity that will take years. After losing more than $1 billion last fiscal year, Intel said in August it would slash around 15,000 workers worldwide as part of a larger plan to cut costs.

“As part of the broad-based cost savings plan we announced in August, we are making the hard but necessary decisions to reduce the size of our workforce,” an Intel spokesperson said in an emailed statement Tuesday. “These are the most difficult decisions we ever make, and we are treating people with care and respect. These changes support our strategy to become a leaner, simpler and more agile company as we position Intel for long-term sustainable growth.”

All employees subject to the layoff have already been notified or will be at least two months before their jobs are eliminated, Intel’s director of corporate people movement, James Warner, said in the federally required notice.

“The first separations are presently scheduled to occur during a 14-day period commencing on November 15, 2024,” Warner wrote.

Analysts say overall Intel is fighting to regain its position as a technology leader after falling behind in the advancement of artificial intelligence.

The semiconductor industry is one of Oregon’s economic drivers, employing around 30,000 people in the state. The industry includes companies that research, develop, design or manufacture computer chips crucial to making modern-day technology function.