Intel has started implementing significant layoffs across multiple facilities as part of a broader effort to streamline its operations and address ongoing financial pressures. Recent reports reveal that nearly 2,000 employees were laid off at Intel’s California sites in Folsom and Santa Clara. In Oregon, about 2,500 workers in Hillsboro and Aloha have been let go, while around 700 jobs have been cut in Arizona. Texas employees have also been warned about potential layoffs, and hundreds of positions in Israel are expected to be eliminated.
Factory Workforce Targeted in New Job Cuts
Last year, Intel reduced its workforce by 15,000 employees, and the company is now preparing for another round of job cuts expected to take place next month. Naga Chandrasekaran, Intel Foundry’s head, informed staff via an internal memo that approximately 15-20% of the company’s factory workforce will be affected.
“These are difficult actions, but essential to meet our affordability challenges and the current financial position of the company. It drives pain to every individual,” Chandrasekaran wrote.
Intel’s first-quarter earnings showed flat year-over-year growth amid stiff competition from Nvidia and AMD. New CEO Lip-Bu Tan, who took the helm earlier this year, hinted at a major restructuring, with this round of layoffs primarily focused on factory operations. With a total headcount of about 108,900 employees at the end of 2024, and roughly half employed in factories, estimates indicate that between 8,000 and 11,000 factory workers could be impacted.
Unlike last year’s reductions, which included buyout packages, these upcoming layoffs may not come with similar incentives. While Intel confirmed the layoffs are underway, the company declined to specify exact numbers.
Company Statement on Restructuring and Future Plans
An Intel spokesperson said, “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.”
The spokesperson added, “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.”
What The Author Thinks
Intel’s large-scale layoffs reflect the intense pressures facing the semiconductor industry today, as companies strive to remain competitive amid rapid technological shifts and economic uncertainty. While cutting jobs may be necessary to maintain financial health, the human impact is significant. Intel must balance cost-cutting with responsible management to protect its workforce and maintain morale, ensuring that these tough decisions do not undermine long-term innovation and stability.
Featured image credit: Chris Potter via Flickr
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