Intel plans to close its DuPont, Wash. office, resulting in more than half of the 700 workers there being offered jobs at other locations, the company said. A small number may face layoffs. The announcement follows closures in New Mexico and Massachusetts announced last month.
Originally built to house up to 3,000 workers, the DuPont facility, located about 20 miles south of Tacoma, will be cut to 300 workers, provided Intel can lease part of the property back from its new owners. “We hope to lease back a portion of it for some of our development teams,” said Intel spokesman Chuck Mulloy. That would allow 300 employees to remain in DuPont.
Mulloy said the remaining employees will be transferred to other Intel sites “or some number could take an option we call redeployment, where they are paid for a period of time to look for another position either inside Intel or outside. “
The company expects most workers will remain with Intel.
The closures in DuPont, Hudson, Mass., and Rio Rancho, N.M., are unrelated, Mulloy said. “In Hudson, the factory will close at the end of 2014 because it’s based on older technology and the processes it runs are four generations behind the leading edge,” he explained. Updating the plant to Intel’s current technology would require more land than is available in Hudson.
The Hudson closing ends Intel’s chip making in the Bay State and will result in the layoff of 700 workers. The plant was originally a Digital Equipment Corp. facility, sold to Intel in 1997 after the failure of DEC’s Alpha processor.
Meanwhile, the closing in New Mexico “was based on the current factory roadmap on what will be built there going forward,” according to Mulloy. Four hundred Intel employees in Rio Rancho, near Albuquerque, will be offered positions in Arizona and Oregon.
Many former DuPont workers are expected to be moved to the Intel facility in Hillsboro, Ore., located west of Portland, in an area sometimes referred to as the “Silicon Forest.”