Intel Corporation has officially confirmed the layoff of 5,000 employees across the United States, marking a significant escalation from earlier estimates of 4,000.
The move is part of a sweeping restructuring initiative led by newly appointed CEO Lip-Bu Tan, aimed at streamlining operations, reducing costs, and repositioning the company amid mounting competitive and financial pressures.
Scope and Geography of the Layoffs at Intel
The layoffs span four major states—Oregon, California, Arizona, and Texas—with the largest cuts concentrated in Intel’s key tech hubs:
- Oregon: 2,392 jobs cut, representing nearly 12% of Intel’s local workforce
- California: 1,935 layoffs, double the initial estimate
- Arizona: 696 employees affected
- Texas: Over 100 roles eliminated
These figures were disclosed through updated Worker Adjustment and Retraining Notification (WARN) Act filings, which require large employers to notify state governments ahead of mass layoffs.
Intel Departments and Roles Impacted
The layoffs affect a wide range of roles, including:
- Engineers in chip design, cloud software, and manufacturing
- Senior executives, including a VP of IT and multiple business unit heads
- Staff in HR, marketing, and back-office operations
Intel reportedly affected up to 20% of the workforce in its internal foundry division, which is responsible for chip manufacturing.
Strategic Rationale Behind the Cuts
CEO Lip-Bu Tan, who took over in March 2025, has emphasized a shift toward leaner, high-performing teams.
In internal communications, Lip-Bu acknowledged that Intel had become too slow, complex, and bureaucratic, and that drastic changes were needed to restore agility and competitiveness.
Lip-Bu’s strategy includes:
- Reducing organizational complexity
- Outsourcing marketing functions to Accenture, which will use AI tools for customer engagement
- Intel is repositioning its culture to define leadership by performance and impact rather than team size.
Financial Pressures and Market Position
Intel’s restructuring follows a $1.6 billion quarterly loss and a $18.8 billion net loss in 2024, as the company continues to lose ground to rivals like Nvidia, AMD, and TSMC.
Lip-Bu has publicly conceded that Intel is no longer among the top 10 global semiconductor firms, and admitted that the company may be too late to compete in the AI training chip market.
Intel’s market capitalization has dropped to $103 billion, less than half of its value 18 months ago, while Nvidia recently crossed the $4 trillion mark.
Employee Support and Severance
Intel has pledged to treat affected employees “with care and respect.” Severance packages include:
- 60-day or four-week notice periods
- Nine weeks of pay and benefits
- Voluntary exits or early retirement options
Intel maintains that these decisions were made after careful consideration. The company believes they are essential for ensuring long-term sustainability.
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