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7h ago

Intel to Cut Up to 20% of Factory Staff in July Under New CEO

Leadership describes the workforce reduction as essential to improving affordability through streamlined operations under mounting financial pressures.

Intel
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Lip-Bu Tan, Intel CEO, speaks in a keynote presentation at Intel Foundry Direct Connect on April 29, 2025, in San Jose. The Bay Area semiconductor giant, will lay off between 15% and 20% of its factory workforce beginning in July, a move expected to eliminate over 10,000 jobs globallyTan, who took over in March, has pledged to streamline operations and eliminate bureaucracy.   
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Overview

  • Intel plans to cut between 15% and 20% of its factory workforce starting in mid-July, marking the first major layoffs under CEO Lip-Bu Tan.
  • The reductions will affect thousands of employees worldwide, with Oregon’s facilities—home to about 20,000 Intel workers—bearing the largest share.
  • The company will not offer voluntary buyouts or early retirements this time, using portfolio changes and skill assessments to determine which roles are eliminated.
  • Intel reported a $1.6 billion loss in the latest quarter and says the cuts will help streamline operations and bolster its position against rivals Nvidia and AMD.
  • Federal funding uncertainty also looms, as Intel has received $1 billion of its $7.9 billion CHIPS Act award, with the remaining subsidies under President Trump’s review.