Intel plans to cut up to 20% of factory staff

Intel is set to reduce its factory workforce by 15% to 20%, starting in mid-July 2025, as part of a major overhaul of its Intel Foundry division. This follows an earlier announcement in April about significant job cuts, though exact numbers weren’t shared at the time. The company, which had 108,900 employees at the end of 2024, aims to streamline operations and focus on engineering roles to boost efficiency and stay competitive.

The layoffs will affect factory workers globally, with a big impact expected in Oregon, where Intel employs about 20,000 people. Naga Chandrasekaran, Intel’s manufacturing vice president, said in an email to staff that these tough choices are needed to address financial challenges.

Unlike last year’s cuts, which included voluntary buyouts, this round will target specific roles based on performance and project priorities. Critical positions, like engineers working on advanced chip technology, are likely to be spared. Intel’s new CEO, Lip-Bu Tan, is leading the charge to simplify the company’s structure and cut costs.

This comes after a tough 2024, with a $19 billion loss and struggles to keep up with competitors like Nvidia and AMD. The layoffs are part of a broader effort to refocus on engineering and innovation to strengthen Intel’s position in the chip industry. While painful, the company says it’s committed to treating affected workers with respect during this transition.