Intel Winds Down Automotive Division, Prepares for Major Layoffs

[AleksandarK]

Intel has confirmed plans to phase out its in-house automotive chip team and lay off most of the employees in that segment. In a memo to staff on Tuesday, the company stated that it will honor existing contracts with vehicle manufacturers and suppliers but will essentially dissolve the unit that designed and marketed its small automotive platform. This move supports Intel's new strategy under new CEO Lip-Bu Tan to concentrate on client computing and data center operations. "We are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers," the statement said. "As part of this work, we have decided to wind down the automotive business within our Client Computing Group. We are committed to ensuring a smooth transition for our customers."

Intel's automotive division has never generated a major share of revenue, and the company does not report its results separately. Still, Intel highlights that over 50 million vehicles worldwide use its processors for services such as infotainment, electric vehicle management, and driver assistance. Despite that footprint, the division remains small compared with the rest of Intel's diverse chip portfolio. Importantly, the decision does not affect Mobileye, which Intel spun off and took public in 2023. Mobileye continues to operate independently, even though Intel retains nearly all of the voting shares. Intel has already informed its manufacturing staff of plans to cut up to 20% of its workforce starting in July. It will also outsource much of its marketing function to Accenture, relying on AI to manage campaigns. These actions are much needed for Intel's determination to make operations leaner and sharpen its focus on the markets where it remains strongest.



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[Apocalypsee]

Why don't they lay off the idiot who suggest outsourcing their marketing to other company which uses AI to do it.

 

[Tek-Check]

They have to cut this and other units. The level of employment in the company is unsustainable in relation to their financial challenges.

 

[_roman_]

So many buy a tablet with wheels. Not everyone wants all those stuff in a tool which has the task to transport people and other goods.

 

[trparky]

Sad to see Intel, a once great American company, in these dire straits but I can’t cry for them, they did it to themselves.

 

[Vya Domus]

Autonomous cars, another sector waiting to implode.

 

[FreedomEclipse]

I guess this leaves the door open a little wider to ARM based chips and also Nvidia who are supposedly wanting to take a much bigger step into this market.

 

[Daven]

Autonomous cars, another sector waiting to implode.

Waymo just expanded into the Atlanta metropolitan area. The fate of autonomous cars is still uncertain. What is certain is that Intel apparently had nothing to offer the industry.

 

[SRB151]

And so it begins.....cut staff, cut engineering resources, slash under performing divisions, just cut R&D in general. What do you have? You have yet another CEO who's pay plan is based almost solely on stock performance. And the easiest way to improve stock performance is to cut expenses to the bone, everything that would help their position in the future goes out the window. All because the only priority on Tan's plate is "how can I cash in on my short term stock options". What will this do for Intel as a whole in 5-10 years? Who cares? I've got mine.

 

[Daven]

And so it begins.....cut staff, cut engineering resources, slash under performing divisions, just cut R&D in general. What do you have? You have yet another CEO who's pay plan is based almost solely on stock performance. And the easiest way to improve stock performance is to cut expenses to the bone, everything that would help their position in the future goes out the window. All because the only priority on Tan's plate is "how can I cash in on my short term stock options". What will this do for Intel as a whole in 5-10 years? Who cares? I've got mine.

5-10 years!?! Woah, you are being way too optimistic on Intel's fate. Intel has maybe five years to turn things around, maybe. More realistically, two.

 

[TheinsanegamerN]

5-10 years!?! Woah, you are being way too optimistic on Intel's fate. Intel has maybe five years to turn things around, maybe. More realistically, two.

Intel still has boatloads of revenue to work with. They're not going anywhere.

 

[stickleback123]

Intel have tried to branch out in endless ways over the last 30 years, and always throws in the towel and would always just fall back to their near monopoly on x86 and screw people in that market. Absolutely no staying power whatsoever, a typical slow lazy monopolist.

I gather their internal culture is about as pleasant as a lava enema too.,

 

[Hecate91]

Intel still has boatloads of revenue to work with. They're not going anywhere.

Their boatloads of revenue is going towards trying at righting a ship taking on water, while they aren't going anywhere they've been giving up on a lot of things and firing a lot of their workforce which doesn't seem like a wise long term decision.

 

[GodisanAtheist]

So when are the Arc cards going on deathwatch?

We all know the day is coming...

 

[trparky]

Their boatloads of revenue is going towards trying at righting a ship taking on water, while they aren't going anywhere they've been giving up on a lot of things and firing a lot of their workforce which doesn't seem like a wise long term decision.

Say goodbye to any kind of risk and innovation from them. We’ll be getting the same old overheating, power hungry slop we’ve been getting from them for years.

 

[Daven]

Intel still has boatloads of revenue to work with. They're not going anywhere.

Revenue is irrelevant. You need profits to grow and succeed as a company. Intel has been running in the red and hemorrhaging money for the past year now. They have to stop the bleeding before they can start innovating again. Hence all the layoffs and outsourcing. And like a patient bleeding out, survival is not always guaranteed.

 

[remixedcat]

Intel should have never bought the company thar made this to begin with. They branched out into areas that just bit them in the end.

Shouldda stuck to CPU/WLAN/ETH/GPU and that's it!!

Intel have tried to branch out in endless ways over the last 30 years, and always throws in the towel and would always just fall back to their near monopoly on x86 and screw people in that market. Absolutely no staying power whatsoever, a typical slow lazy monopolist.

I gather their internal culture is about as pleasant as a lava enema too.,

Supposedly from others observations is full of fuddy duddy crust and peloton moms so ...