Intel Is Shutting Down A Plant In Massachusetts And Laying Off 700 People

Brian krzanich intelIntelIntel CEO Brian Krzanich

Intel said on Thursday that it is closing its factory in Hudson, Mass., by the end of 2014 and will cut about 700 jobs, reports Hiawatha Bray at the Boston Globe. The company hopes to sell the plant, Intel spokesperson Chuck Mulloy told Business Insider.

The factory was originally built by a company called Digital Equipment Corp, which has long since closed its doors. It was acquired by Intel in 1998. Intel said that this factory uses equipment that is more than a decade old and both the factory and the location can’t be revamped to meet its current needs, Mulloy said.

Intel is currently spending billions to build new factories elsewhere, including a $US5 billion factory in Chandler, Ariz., and a massive expansion to a factory in Hillsboro, Ore., which some say will cost $US3 billion or more.

But those factories are enormous. The Hudson factory is only on a 150 acres and there simply isn’t room to turn it into a state-of-the-art “super-fab,” Mulloy said.

100 people will be cut this year, Mulloy said, and the plant will continue to run and employ the other 600 until 2014, while Intel looks for a buyer.

Intel will still be a major employer in Hudson. It has an R&D center there that employees 850 people.

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