Intel Corp. on Tuesday would not confirm or deny a news report that it will cut 215 jobs at its Rio Rancho plant in the coming months. Citing unidentified sources, KOB TV reported that the Rio Rancho plant would lose 215 jobs. But Intel spokeswoman Natasha Martell Jackson said she wouldn’t comment on the report. Related Story: Latest tax break for Intel didn’t stop job cuts
Speculation has been swirling about the fate of the Rio Rancho plant since Intel announced last week that it would cut 12,000 jobs worldwide, or 11 percent of its workforce, in a massive restructuring effort.
Just three years ago, the New Mexico Legislature significantly changed what manufacturers owe in taxes in the state. Legislators squarely aimed the changes at one big company: Intel. Next year, the tax changes will fully eliminate payroll and property taxes for manufacturers and instead only tax them on their in-state sales. Related Story: After report of layoffs, Intel future in NM still unclear
Over the years, the computer microprocessing giant has enjoyed at least $2.6 billion worth of state and local subsidies for its facility in Rio Rancho. But the company also fell on hard times this decade as personal computers, which Intel’s microchip is used for, ceded ground to cell phones and mobile devices.
The Committee for Economic Development, a pro-business think tank in Arlington, Virginia, recently issued a report claiming New Mexico’s economic stagnation is fueled by “crony capitalism,” which includes favors in exchange for campaign contributions. This piece originally appeared on Follow the Money, a project of the National Institute on Money in State Politics. This piece is shared through a Creative Commons Attribution-Noncommercial-Share Alike 3.0 United States License. The National Institute on Money in State Politics decided to examine campaign contributions from the ten companies that benefited most from state subsidies in New Mexico, using a list provided by Good Jobs First. The examination revealed that, by and large, these companies were not major contributors to New Mexico candidates and party committees.