Intel has kicked off a widespread round of job cuts this week, informing staff members individually about their future with the company. CEO Lip-Bu Tan first advised employees in April to expect significant layoffs, following years of production challenges and declining sales. Although Intel has not provided a total headcount for the reductions, the process will unfold over several weeks, with some workers receiving immediate notice and others awaiting final decisions. Within Intel's manufacturing division, known as Intel Foundry, the company plans to eliminate approximately 15% to 20% of technician, engineer, and researcher positions in its Oregon facilities. At the same time, Intel will close its
automotive technology unit, resulting in layoffs for most employees in that business, and outsource
marketing activities to Accenture under a new arrangement designed to harness AI for greater efficiency.
Initial layoff notices have gone out in California, and further announcements are expected soon in Arizona and Oregon, Intel's largest US sites. These cuts follow last summer's reduction of 15,000 roles, which left Intel with roughly 109,000 employees worldwide. In 2024, the company reported a $19 billion loss as rivals such as TSMC, AMD, and NVIDIA outpaced Intel with more advanced and cost-effective chips. Plans to expand fab capacity in Ohio, Germany, and Israel have been put on hold due to diminished revenue and shifting market priorities. Intel is counting on its next-generation 18A process node, due for release later this year, to restore its competitive edge. For external customers, the interest is drawn from
18A-P and 14A.