Intel to begin laying off factory workers in July; here's what the company said
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Intel is set to begin laying off factory workers at its Silicon Forest campus in Oregon starting mid-July. The initial round of layoffs is expected to be completed by the end of the month. However, the chip-making company has indicated that further reductions may be implemented if deemed necessary. According to a report by Oregon Live, Intel informed its employees of this decision this week. An internal message sent to staff at Intel's production facilities outlined a restructuring within the Intel Foundry manufacturing group. This reorganisation aims to shift the group's focus more towards engineering and technical roles, implying a reduction in middle management positions.
While specific figures for the number of affected employees have not been provided yet, the company's message suggests that the decision is official. Intel noted that these measures are a necessary step to enhance its financial position.
What Intel said about laying off factory workers
In a statement sent to Tom's Hardware, Intel wrote: 'As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. 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.'
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In December 2024, Intel's employee headcount stood at 108,900, about 15,000 fewer than under CEO Pat Gelsinger's cuts last year, the report notes. The company's Oregon sites were no exception, which cut roughly 3,000 jobs but retained about 20,000 employees.
Intel has not specified how many roles will be trimmed at Intel Foundry. However, staff in other divisions told Oregon Live that they anticipate similar cuts, with each unit free to implement layoffs independently as long as they meet their cost-reduction goals.
Intel's Oregon site hosts the company's D1X and D1D fabs, which, despite heavy automation, depend on engineers, technicians, operators, analysts, and support staff. Critical roles like process engineers and high-skill technicians for EUV lithography are vital and may not be eliminated, the report adds.
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