Intel to fire 20 per cent of its factory workforce in July, more job cuts likely to follow
Intel is planning to fire more employees in July and this time, the layoffs will reportedly impact 15 to 20 per cent of its factory workforce. The upcoming job cuts will mark the first major workforce reduction by the chipmaker since the new CEO, Lip-Bu Tan, assumed the role in March. The upcoming cuts will affect thousands of employees globally, particularly those associated with Intel's foundry operations — the company's in-house chip manufacturing division.advertisementAccording to an internal memo accessed by The Oregonian, the new round of layoffs at Intel is scheduled to begin in mid-July and will likely conclude by the end of the month. According to Intel's manufacturing chief, Naga Chandrasekaran, the decision has been described as 'deeply painful' but necessary to address affordability challenges and improve operational efficiency. The memo also reportedly confirmed that the new round of job cuts will range between 15 and 20 per cent, with most of the impact expected on Intel's core factory workforce.While Intel has not directly commented on the percentage of employee reduction, the company has reportedly stated that employees will be treated with 'care and respect' through the transition. It said the changes are part of a broader effort to reduce organisational complexity and empower engineering teams to better respond to customer needs.advertisement
The new round of layoffs at Intel was announced at a time when the chipmaker is facing significant financial headwinds. The company is dealing with mounting competition in the PC and data centre markets and is also somewhat lagging behind in the rapidly growing artificial intelligence space. As a result, it is looking to streamline operations and cut costs. Intel previously laid off 15,000 employees in 2024, including 3,000 in Oregon — home to its largest manufacturing base.While the upcoming layoffs will reportedly affect Intel's factories worldwide, the biggest blow is reportedly expected in Oregon, where Intel employs around 20,000 workers. The company has already notified departments to prepare for cuts based on investment priorities and skill assessments, with no indication of voluntary buyouts being offered this time. Individual teams have been given the discretion to implement the layoffs within the framework provided by top management.The layoffs at Intel also come against the backdrop of job cuts amid a wider tech industry downturn in 2025. According to layoffs tracker platform Layoffs.fyi, over 62,000 tech workers have lost their jobs so far this year. Big tech heads including Microsoft, Google, Amazon, and Meta have all announced significant cuts in recent months in line with new business restructuring and cost-cutting measures.
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