DUPONT, Wash. -- Intel is moving hundreds of jobs out of the state of Washington.

On Monday morning, 350 employees at the DuPont campus in Pierce County found out they will be relocated to other Intel locations, likely in Oregon. That's about half of the 690 employees currently working in DuPont.

Another 32 will be laid off. They will have two months with full pay and benefits while they find new work.

The company hopes to keep 310 employees working in DuPont.

The existing Intel campus at DuPont was built in the mid 1990s to house 3,000 employees. The company hopes to sell the property to someone else and lease back the space for the 310 employees.

Intel says if that doesn't work, those 310 employees will eventually move to Oregon.

After Intel's announcement, DuPont Mayor Michael Grayum released a statement saying the decision provides us an opportunity to increase the utilization of the site, market a world class building, and build on the momentum of DuPont's significant economic growth.

Intel will continue to operate here and we are excited to welcome Amazon's new distribution center, a new downtown mixed-use business and residential development, two new hotels, and the City's first full-service grocery store which opens tomorrow at 8 a.m., Grayum added.

As employees of the soon-to-be opened DuPont General Store rush to fill the shelves, the owner is confident there's enough demand to support the town's first grocery store in nearly 50 years, with or without Intel.

I definitely believe there's always a positive spin on everything, said Sandy Ikemeier, owner of the DuPont General Store.

The bigger concern for DuPont and nearby communities will be how deep could the rumored military cuts get at Joint Base Lewis-McChord. That would have a much greater impact.

KING 5's Liza Javier and Drew Mikkelsen contributed to this report.

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