Introduction
Intel has started laying off employees, beginning with 107 workers tied to its headquarters in Santa Clara, California, reports CRN. The move is part of a larger cost-cutting and restructuring plan announced by CEO Lip-Bu Tan in April this year to turn around the struggling semiconductor company. According to the report, the company has filed a notice under California’s Worker Adjustment and Retraining Notification (WARN) Act. In the notice, Intel said that the layoffs will begin on July 15. Employees will either be given a 60-day notice or a four-week notice with nine weeks’ pay and benefits. GetMyIndia.com
Layoffs Impact Key Engineering and Cloud Roles
“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” an Intel spokesperson told the publication.
As part of the latest Intel layoffs, the affected roles include 22 physical design engineers, three physical design engineering managers, three system-on-chip logic design engineers, three product development engineers, four design-for-test design engineers, six cloud software architects, four cloud software engineering managers and two cloud software development engineers. “We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work,” the spokesperson added.
More job cuts likely across Intel divisions
Intel is reportedly planning to lay off 15–20% of workers in its chip manufacturing division, according to an internal memo cited by CRN. In April, CEO Tan had warned that reducing the company’s workforce was inevitable as part of efforts to cut costs by $500 million this year and another $1 billion in 2026.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” Tan wrote in a memo. “We must balance our reductions with the need to retain and recruit key talent,” he wrote. “I will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed.” “The best leaders get the most done with the fewest people,” Tan stated.
Automotive chip unit shuts down in Germany
Beyond layoffs in the U.S., Intel has confirmed the closure of its automotive chip division in Munich. The unit, headed by Intel veteran Jack Weast, was developing software-defined vehicle platforms. Most employees in the unit are expected to be laid off.
In a statement, an Intel spokesperson told CRN: “The decision to wind down the automotive business, which resided within the Client Computing Group, is part of a move by Tan to refocus on the company’s core client and data centre portfolio.”
This division had been seen as one of Intel’s bets on the future of mobility. But Tan appears to be redirecting Intel’s efforts back to its more traditional strengths, such as CPUs and data centres, amid rising cost pressures.
Marketing operations outsourced to Accenture
In another major shift, Intel will outsource part of its marketing operations to global consulting firm Accenture. The transition will focus on customer communication roles, which will be increasingly handled by artificial intelligence systems.
“We are focused on modernising our digital capabilities to serve our customers better and strengthen our brand,” the company said. “Accenture is a longtime partner and trusted leader in these areas, and this engagement will allow Intel and its partners to drive better business outcomes through simpler processes and programmes.” The outsourcing is part of a wider move to streamline non-core operations, reduce overheads, and bring in external partners for functions no longer deemed strategic.
Massive Tech Sector Layoffs Continue Into 2025
Intel’s latest cuts follow a round of 15,000 layoffs in 2024. They come amid a broader wave across the tech sector. According to Layoffs.fyi, more than 62,000 tech workers have already lost jobs in 2025. Major players like Microsoft, Amazon, Meta, and Google have all announced staff reductions this year.
The pressure on chipmakers has grown sharply as global demand shifts and competition intensifies. Intel, once the industry’s uncontested leader, has struggled to maintain its edge in manufacturing and has faced delays in product rollouts. Tan’s restructuring may be bold, but it is also risky. Much of Intel’s future now hinges on whether these sweeping changes can actually lead to faster execution, stronger innovation, and restored confidence—both inside and outside the company.
Conclusion
Intel’s latest round of layoffs and strategic shifts underscores the company’s urgent push to streamline operations, reduce costs, and refocus on core competencies like CPUs and data centers. With over 100 roles already cut and more reductions expected, including the closure of its automotive chip unit and outsourcing of marketing functions, CEO Lip-Bu Tan is making decisive if painful moves to reverse Intel’s decline. While these changes aim to boost execution and innovation, they carry significant risks, particularly in talent retention and market perception. Intel’s turnaround now hinges on the success of this aggressive restructuring.
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