Intel to lay off fab workers in mid-July — company aims to refocus on more engineering talent

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2 days ago

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Intel will start to lay off its fab personnel at its Silicon Forest campus in Oregon from the middle of July, the company wrote to its employees this week, according to Oregon Live. The first round will conclude by the end of that month, but the company may perform another round of layoffs if it deems necessary.
An internal message sent to employees at Intel's production facilities outlined that the company is restructuring its Intel Foundry manufacturing group to make it more focused on engineering and technical roles (i.e., cutting middle management). While no exact figures were provided, the communication acknowledged the seriousness of the decision and claimed it as a necessary step to improve the company's financial position.
"As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company," a statement by Intel sent to Tom's Hardware reads. "Removing organizational 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."
As of December 28, 2024, Intel's workforce comprised 108,900 people, down around 15,000 eliminated under the previous chief executive Pat Gelsinger last year. Intel's Oregon facilities were not an exception and eliminated around 3,000 jobs, yet maintained a headcount of around 20,000.
Intel did not announce how many positions it plans to cut at Intel Foundry. However, people from other divisions indicated to Oregon Live that they expect similar reductions, though each unit would be allowed to manage the process independently as long as they meet specific cost-reduction targets.
Oregon is home to some of Intel's most advanced production facilities, including D1X and D1D fabs used to develop, test, and perfect the upcoming process technologies. Despite high levels of automation of modern semiconductor fabrication facilities, even advanced fabs like Intel's D1D and D1X in Oregon still rely on a diverse workforce that includes process and equipment engineers, technicians, operators, analysts, and a variety of support staff.
The most critical roles, such as engineers who develop and maintain cutting-edge process technologies, and high-skill technicians who manage complex equipment like EUV and High-NA EUV lithography systems, are essential to fab operations and unlikely to be affected by layoffs without risking delays in technology development or production uptime.
However, Intel may reduce headcount among roles that have become more redundant due to automation or operational streamlining. These include fab operators, administrative staff, logistics personnel, and lower-skill technicians in highly automated areas.
On the one hand, by targeting non-core functions and consolidating support roles, Intel can cut costs while preserving the technical expertise needed to keep its most advanced manufacturing lines running. On the other hand, cutting lower-skilled personnel may reduce operational flexibility, slow response times during equipment issues, and increase workload for remaining employees. Keeping in mind that these fabs run 24/7, even small delays in maintenance or logistics can lead to costly downtime. Nonetheless, it looks like for Intel, desperate times call for desperate measures.
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