The layoffs are expected to eliminate about 529 employees on a permanent basis.
Under new chief executive officer (CEO) Lip-Bu Tan, Intel embarked on a plan in April to slash jobs and reduce operating expenses.
The company hasn’t given a total figure for the cuts, but a person familiar with the matter has put the amount at more than a fifth of staff.
Tan is trying to turn around the Silicon Valley pioneer after years of decline.
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The company lost its technological advantage to other manufacturers, and has missed out on the boom in artificial intelligence computing — a surge that greatly benefited Nvidia Corp.
In a statement, Intel said it was making the Oregon cuts to become “a leaner, faster and more efficient company.”
“Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” the Santa Clara, California-based company said.
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“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.”
Hillsboro, a suburb of Portland, is home to some of Intel’s biggest factories and research centers.
The struggling chipmaker is the city’s largest employer.
