Intel will reportedly lay off between 15 and 20 percent of its factory workers in July 2025. This round of layoffs will be the first major workforce reduction since Lip-Bu Tan took office as the new CEO in March.
This is according to India Today. Although the company is still making a profit in certain business units, Intel as a whole recently reported a loss of $1.6 billion. This has led to layoffs and a strategic change of course.
The upcoming layoffs will affect thousands of employees worldwide, particularly in the foundry division. An internal memo indicates that the layoffs will begin in mid-July and are likely to be completed by the end of that month. Naga Chandrasekaran, responsible for production at Intel, calls the decision very painful. He states that the reorganization is necessary to keep costs manageable and improve efficiency. The memo also states that 15 to 20 percent of the factory workforce will be affected, with the greatest impact on core factory personnel.
Although Intel has not publicly disclosed the exact percentage of layoffs, the company has reportedly indicated that it will treat its employees with care and respect during this transition. The measure is part of a broader effort to simplify the organizational structure and give technical teams more power to serve customers.
Intel streamlines operations
These layoffs come at a time when Intel is facing severe financial headwinds. The company is seeing increasing competition in the PC and data center markets and is lagging behind in the rapidly growing field of artificial intelligence. Intel is therefore seeking to streamline its operations and cut costs. In 2024, the company already laid off 15,000 people, including 3,000 in Oregon (US), where Intel’s largest production site is located.
Although the factory layoffs will have a global impact, Oregon appears to be the hardest hit. Approximately 20,000 people work for Intel there. Departments have already been asked to prepare for cutbacks based on investment priorities and skills assessments. This time, there will be no option for voluntary departure. Teams are allowed to implement the layoffs within management guidelines.