Intel is set to initiate a significant round of layoffs starting mid-July 2025, marking the first major workforce reduction under newly appointed CEO Lip-Bu Tan.
The restructuring primarily targets Intel Foundry, the company’s internal manufacturing division.
While Intel has not disclosed the exact number of job cuts, reports indicate that layoffs will impact factory workers in the U.S., China, and Israel, with some teams facing up to 20% reductions.
Scope of the Layoffs at Intel
Intel’s restructuring will focus on reducing organizational complexity and empowering engineering teams to enhance execution.
The layoffs will be carried out in multiple phases, with the first wave expected to conclude by the end of July.
Affected regions include:
- United States: Factory workers at Intel’s Silicon Forest campus in Oregon will be among the first impacted.
- China: Reports suggest Intel China may cut up to 20% of its workforce, with deeper reductions in certain teams.
- Israel: Intel’s Kiryat Gat manufacturing site will see middle management layoffs, marking the first major workforce reduction at the facility.
In response to concerns, Intel stated, “Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
They added, We are making these decisions based on careful consideration of what is needed to position our business for the future, and we will treat people with care and respect as we complete this important work”.
Reasons Behind the Restructuring
Intel’s decision to cut jobs stems from several industry challenges, including:
- Declining demand for PCs and laptops, affecting revenue streams.
- Intensified competition from Nvidia and AMD, particularly in AI chip development.
- Financial pressures, prompting Intel to reduce costs and optimize operations.
The layoffs follow Intel’s previous workforce reductions in 2023, when the company eliminated 15,000 jobs globally, including 3,000 positions in Oregon.
Employee Concerns and Market Impact
Intel employees have expressed uncertainty over the restructuring, with speculation about additional layoffs beyond July.
The company’s Oregon-based workforce, which includes 20,000 employees, remains particularly concerned about the impact on local operations.
Market analysts are closely monitoring Intel’s strategic transformation, as the company seeks to regain its competitive edge in semiconductor manufacturing.
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