Intel to cut 107 Silicon Valley jobs and shut automotive unit as global layoffs begin
Intel, the Silicon Valley-based semiconductor giant, announced Tuesday it will cut 107 jobs across four facilities in Santa Clara as part of a sweeping global downsizing effort.
The layoffs, set to take effect July 15, mark the first phase of a broader plan to reduce up to 20% of the company's factory workforce under new CEO Lip-Bu Tan.
The job reductions will impact employees at Intel's Robert Noyce Building, along with nearby sites on Juliette Lane and Laurelwood Road, according to filings with California's Employment Development Department.
The company reported that 76 positions will be eliminated at its Mission College Boulevard headquarters alone.
The global cuts are part of Intel's broader efforts to eliminate more than 10,000 jobs, primarily in Intel's Foundry division, which includes both factory floor technicians and advanced chip researchers.
The restructuring comes amid a prolonged slump in sales, missed opportunities in the artificial intelligence chip sector, and intensifying competition from rivals like Nvidia.
'These are difficult actions but essential to meet our affordability challenges and current financial position of the company,' Naga Chandrasekaran, Intel's vice president of manufacturing, wrote in a company-wide memo earlier this month. 'It drives pain to every individual.'
In addition to the factory reductions, Intel will shutter its automotive division and lay off most of the unit's employees. Although not a central part of its business, Intel has said that more than 50 million vehicles are equipped with its processors.
'As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings,' Intel said in a statement.
The moves follow a first-quarter loss of $821 million and a headcount drop from 125,000 in 2023 to approximately 109,000 today.
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