Intel Corp. is cutting more than 500 positions in Oregon as part of a layoff plan that’s ultimately expected to affect roughly 20% of the chipmaker’s staff.

The Oregon job reduction will hit facilities in Aloha and Hillsboro starting on July 15, Intel said in a regulatory filing. The layoffs are expected to eliminate about 529 employees on a permanent basis. The latest disclosure follows an announcement in California, where 107 employees were let go at Intel’s Santa Clara headquarters.

Under new Chief Executive Officer 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.

The Oregon announcement helped lift the stock 7.2% in New York trading. Intel shares had climbed nearly 18% in 2025 after Tuesday’s move, compared with an 13% gain for the Philadelphia Stock Exchange Semiconductor Index.

Tan is trying to turn around the Silicon Valley pioneer after years of decline. 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 organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” the company said. “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.