Intel Corporation, one of the world’s leading semiconductor manufacturers, has initiated a sweeping round of global workforce reductions, beginning with the layoff of 529 employees across its Oregon campuses in Hillsboro and Aloha.
The move is part of a broader restructuring plan under newly appointed CEO Lip-Bu Tan, aimed at streamlining operations, cutting costs, and refocusing the company’s strategic priorities amid intensifying competition and financial pressure.
The layoffs, scheduled to begin on July 15, 2025, were disclosed through a Worker Adjustment and Retraining Notification (WARN) filing with state authorities.
Intel is implementing workforce reductions as part of its restructuring plan.
Alongside these cuts, the company is shutting down its automotive chip division in Munich, Germany, which had been focused on developing software-defined vehicle platforms.
The closure reflects Tan’s decision to refocus on Intel’s core strengths in client computing and data centers, amid rising competition from NVIDIA, AMD, and Qualcomm.
Scope and Impact of Intel Oregon Layoffs
Intel’s Oregon facilities represent the company’s largest research and development hub globally, employing nearly 20,000 workers.
The current round of layoffs will impact several business units across Intel.
Approximately 300 engineering roles will be affected at four major sites in Washington County.
Affected employees are being offered severance packages, extended benefits, and transition support.
Depending on their tenure and role, they will receive either a 60-day notice or a four-week notice period.
Intel has confirmed that the job cuts may affect its eligibility for up to $115 million in state economic incentives.
The government links these incentives to specific benchmarks for job creation and employee retention.
CEO Lip-Bu Tan’s Vision: Leaner, Faster, More Focused
Since taking over as CEO in March 2025, Lip-Bu Tan has championed a cultural and operational reset at Intel.
His strategy includes:
- Reducing organizational complexity
- Empowering engineering teams
- Eliminating non-core operations
- Outsourcing select functions, including marketing roles to Accenture
Tan has openly criticized Intel’s legacy management practices, particularly the emphasis on team size as a performance metric.
“The best leaders get the most done with the fewest people,” he wrote in an internal memo.
Financial Pressures and Industry Headwinds
Intel’s restructuring comes amid mounting financial challenges.
Intel reported a net loss of $821 million in Q1 2025. To recover, the company is targeting $500 million in cost reductions this year and plans to cut an additional $1 billion in 2026.
Capital expenditures are also being trimmed by $2 billion.
Intel previously laid off 107 employees at its Santa Clara headquarters.
The layoffs will expand globally and could impact up to 20% of its workforce, or more than 10,000 employees.
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