More Local Business

• Mineral leases concern residents in eastern New Mexico
• PNM: Power Saver plan would reduce electricity use in peak demand cycle
• Air-bag waiver brings Tesla car plant one step closer to Albuquerque

MOST RECENT TRIB STORIES

• ABQTrib.com to remain available
  08:48 a.m., February 25, 2008
• Congressman is indicted
  08:37 a.m., February 23, 2008
• Series of attacks target Green Zone
  08:36 a.m., February 23, 2008
• Iran is defying U.N., agency says
  08:35 a.m., February 23, 2008
• Waterboarding approval probed
  08:34 a.m., February 23, 2008

TRIB IN THE BLOGOSPHERE*

• Ty Murray Invitational thrills fans in Albuquerque
• Is Rome Burning?
• Ominous Skies
• The Road to Invalidation
• Albuquerque company participates in “Extreme Makeover: Home Edition”

*Note: The Tribune does not create and is not responsible for the blogosphere's headlines and stories. These links to blogs talking about ABQTrib.com are automatically generated. Use them at your own risk.

STORY TOOLS

• E-mail story
• Comments
• iPod friendly
• Printer friendly

SHARE THIS STORY [?]

The loss of 1,000 workers at the Intel Corp. microchip plant in Rio Rancho might ripple well beyond the borders of the company's sprawling campus.

Larry Waldman, a senior economist with the University of New Mexico's Bureau of Business and Economic Research, projects the layoffs expected to come in August could cause the loss of another 1,000 jobs in places such as the retail and service sectors.

"It's not going to be just 1,000 jobs when you look at effects on other parts of the economy," said Waldman, referring to retail and service jobs that might supplement Intel workers.

While that may not be the rosiest picture, Waldman said the losses will have only a minor impact on the economies of both the state and Albuquerque metro area.

And local economic development leaders - joined by Gov. Bill Richardson - say the area's economy is poised to absorb many of the jobs lost at Intel, the state's largest industrial employer.

On Tuesday, Intel announced that it plans to cut more than 1,000 jobs at its Rio Rancho facility as it prepares to end production of an older silicon wafer technology made in its Fab 11 unit. Intel employs 4,700 workers in Rio Rancho.

Liz Shipley, Intel's communications manager for New Mexico, on Wednesday said the job reduction will be implemented throughout the site and won't be limited to employees who work in Fab 11.

Shipley said the company in coming months will begin to assess the skills it will require as it moves toward producing chips with circuit lines 45 nanometers thick - about half the size of current technology.

The Intel workers who don't meet the staffing needs are expected to be notified in August, she said.

Workers who choose to leave immediately will be offered a severance package, she said.

Others can opt into the company's redeployment program. Shipley said those employees are typically given two months to search for new positions at other Intel sites. They will be provided with assistance from the company, which could include help in finding jobs outside of the company, she said.

"The employees' only job is to look for a new job," Shipley said of the program.

Those who don't find new jobs through the redeployment program, within the company or otherwise, are then offered a severance package.

Richardson on Tuesday called the manufacturing sector in Albuquerque "robust" while saying the state should be poised to absorb the Intel job losses.

Fred Mondragon, economic development director for Albuquerque and newly named secretary of the state Economic Development Department, said while that's true, it won't be easy.

"These are very specialized jobs," Mondragon said of the Intel workers. "Will the job holders have the skill and flexibility and so on?"

Mondragon and others point to local jet-maker Eclipse Aviation, electric-car-maker Tesla Motors - which will break ground on a manufacturing plant in coming weeks - and solar energy technology firm Advent Solar as manufacturing companies that are expected to grow.

"The (Albuquerque) economy is diverse, it's vibrant, it's growing. I think we'll be able to absorb a lot of the jobs that are being lost," Mondragon said. "I think people who are willing to stay here and work and have some flexibility in the next job they take will be able to find work."

Gary Tonjes, executive director of nonprofit business recruiter Albuquerque Economic Development, said Albuquerque is a finalist for six companies looking for a home, three of which are in manufacturing.

The news of the Intel job cuts, while disappointing, might bolster the city's chances with those companies as evidence of an existing and available skilled work force.

"This certainly provides an exclamation point to them on those statements about (work force) availability," Tonjes said.

Ultimately, job growth in the state and Albuquerque metro area is so strong that losing 1,000 jobs will only drop a few points off the year's job growth projections, Waldman said.

Based on his own estimation from March, the state this year is projected to see a 2.7 percent increase in employment and 3.1 percent for the Albuquerque area. The Intel job losses would drive the state's projection down to around 2.4 percent and 2.8 percent for the Albuquerque area.

By comparison, the nationwide projected job growth for the year is 1.7 percent, according to economic forecasting firm Global Insight Inc.

"We're about twice the national average in terms of job growth," Waldman said.

"It's not the end of the world," Waldman said of the Intel losses. "But it's surely not very pleasant."