Intel Corporation is set to lay off over 10,000 employees beginning July 2025, primarily from its Intel Foundry division.
The layoffs, which will affect 15% to 20% of the foundry workforce, come as part of a broader cost-cutting and restructuring strategy under new CEO Lip-Bu Tan.
Notably, the company has confirmed that no severance packages, voluntary buyouts, or early retirement options will be offered to the affected employees.
Scope and Scale of Layoffs at Intel
The job cuts will affect 15 wafer fabrication plants spread across 10 global locations.
A wide range of roles will be impacted, from factory floor technicians to R&D personnel working on next-generation microprocessors.
This is Intel’s third major layoff round in less than a year, following the elimination of 15,000 jobs in August 2024 and additional cuts earlier in 2025.
According to an internal memo from Intel Manufacturing Vice President Naga Chandrasekaran, the layoffs are being driven by “affordability challenges” and the company’s current financial position.
Employees will be selected for termination based on performance evaluations, skill alignment, and strategic priorities, rather than through voluntary exit programs.
No Severance: A Stark Departure from Past Practices
Unlike previous workforce reductions, Intel has opted not to offer severance pay or early retirement incentives.
This decision has sparked concern and criticism, especially given the scale of the layoffs.
The company has justified the move by emphasizing the need to streamline operations and eliminate bureaucracy.
This aligns with CEO Lip-Bu Tan’s vision to rebuild Intel’s engineering-first culture.
Financial Pressures and Strategic Shifts
Intel reported a $821 million loss in Q1 2025, underscoring the urgency behind its restructuring efforts.
The company has struggled to keep pace with competitors like Nvidia and AMD.
This gap is especially evident in the AI and data center markets, where rivals have pulled ahead.
Intel is also facing delays in receiving $7.9 billion in CHIPS Act subsidies.
These funds are still under review by the Trump administration, adding to the company’s financial challenges.
CEO Lip-Bu Tan, who took over in March 2025, has made it clear that he intends to cut over 20% of Intel’s global workforce as part of a turnaround strategy.
“The best leaders get the most done with the fewest people,” Lip-Bu stated in an April memo, emphasizing his belief in lean management.
Intel Layoffs: Who Will Be Affected?
Critical technical roles—such as engineers in advanced process technologies and technicians handling lithography equipment—are expected to be retained.
However, positions made redundant by automation will face elimination.
The layoffs will disproportionately affect mid-level roles and non-core functions, particularly in the manufacturing and R&D segments.
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