Ryan Randazzo

The Republic | azcentral.com

Intel's 12,000 job cuts could have impact on Chandler

The company is Arizona's seventh-largest employer

Intel reported 11,300 workers in the state recently

Intel Corp. announced Tuesday it will lay off as many as 12,000 employees worldwide as it shifts away from the personal-computer market and more toward data storage and smart devices.

The immediate impact on Arizona was unknown, company officials said.

Intel is the seventh-largest employer in the state with 11,300 employees here. Its Chandler fabrication facilities are a major driver of the economy in the East Valley.

Company spokeswoman Jeanne Forbis in Chandler said the job cuts will be made in the next 60 days and not completed until mid-2017. She could not say how many Arizona workers would be affected.

Intel CEO Brian Krzanich broke the news to employees in an email on Tuesday.

The cuts will be made by consolidating sites, voluntary and involuntary departures, and a "re-evaluation of programs," according to Intel.

MORE: Intel to lay off 11% of workforce in big shift from PCs

RELATED: Chandler's Price Corridor could get Silicon Valley feel

The company's two campuses are Intel Chandler, 5000 W. Chandler Blvd, which opened in 1980, and Intel Ocotillo, 4500 S. Dobson Road, which became operational in 1996.

Intel expects the program to deliver $750 million in savings this year and an annual run rate savings of $1.4 billion by mid-2017. The company will record a one-time charge of approximately $1.2 billion in the second quarter.