Altera Corporation, the programmable chipmaker recently spun off from Intel, has announced it will permanently lay off 82 employees at its San Jose headquarters this fall, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state of California.
Founded in 1983 and acquired by Intel in 2015 for $16.7 billion, Altera operated as Intel’s Programmable Solutions Group before becoming an independent entity earlier this year. Intel still retains a 49% stake in the company after selling a 51% majority share to private equity firm Silver Lake in a deal valued at $8.75 billion, which is expected to close later this year. The sale is intended to give Altera operational independence while allowing Intel to focus on its core semiconductor business.
“The layoffs reflect the company’s transition under new ownership,” said sources familiar with the matter. The San Jose-based firm’s decision to reduce its workforce comes amid a broader wave of job cuts by Intel across the Bay Area and California, impacting hundreds of employees.
Silver Lake’s chairman and managing partner, Kenneth Hao, described the investment as “a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors.” The firm aims to bolster Altera’s position in the highly competitive programmable chip market through this partnership.
Altera’s job cuts are unfolding in a politically sensitive environment for Intel. Recently, former President Donald Trump publicly called for the resignation of Intel CEO Lip-Bu Tan, citing alleged ties to Chinese semiconductor companies. However, after a White House meeting last Monday, Trump praised Tan’s career as “an amazing story,” a move that coincided with a 3.5% rise in Intel’s share price.
The WARN notice filed with the California Employment Development Department states that the 82 employees affected will face permanent layoffs beginning this autumn. The announcement did not specify which departments or roles would be impacted, but Altera’s San Jose headquarters is a critical hub for its operations in programmable chips and semiconductors.
Altera’s programmable chips are used in a variety of applications, including telecommunications, data centres, and automotive technology, making the company a key player in emerging technology markets. The operational independence granted by the Silver Lake deal aims to accelerate innovation and agility in this competitive landscape.
The semiconductor sector, in particular, remains under pressure due to supply chain disruptions, geopolitical tensions between the US and China, and rapid technological change requiring constant investment in research and development.