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Intel is preparing for a significant workforce reduction, impacting its Intel Foundry division. The layoffs, set to begin in July, could affect over 10,000 employees globally, marking a substantial shift in the company’s operational structure.
This decision comes as part of a broader restructuring effort led by CEO Lip-Bu Tan, aimed at streamlining operations and cutting costs amid challenging financial conditions and intense competition in the semiconductor market.
Massive Job Cuts Hit Intel Foundry
Sources indicate that between 15% and 20% of the Intel Foundry workforce will be affected. In an internal memo obtained by The Oregonian, Intel Manufacturing Vice President Naga Chandrasekaran acknowledged the difficulty of the decision: “These are difficult actions but essential to meet our affordability challenges and current financial position of the company. It drives pain to every individual.”
No Severance Packages Offered
Adding to the blow, Intel will reportedly not be offering severance packages to the affected employees. Instead, selections for layoffs will be based on performance evaluations and alignment with strategic priorities.
Chandrasekaran’s memo further detailed that the reductions would consider “portfolio changes, level and position elimination, skill assessment for remaining positions, and some hard decisions around our project investments,” while also accounting for “factory operations impact.”
CEO’s Restructuring Plan in Motion
These foundry layoffs are an acceleration of CEO Lip-Bu Tan’s cost-cutting measures, which were initially revealed in April. Tan has been vocal about the need to eliminate bureaucracy and rebuild an engineering-focused culture within Intel. He stated in an earlier memo, “I’m a big believer in the philosophy that the best leaders get the most done with the fewest people.”
Intel’s workforce has been shrinking, from approximately 125,000 in 2023 to around 109,000 by the end of 2024. The company reported an $821 million loss in the first quarter of 2025, underscoring the financial pressures driving these changes.
Third Round of Layoffs in a Year
This upcoming reduction marks the third major layoff round within the past year. Previous cuts included 15,000 jobs eliminated in August 2024 and additional reductions announced earlier this year by CEO Tan.
The restructuring occurs as Intel navigates fierce competition and seeks to capitalize on the AI boom. Delays in federal CHIPS Act funding further complicate the company’s financial outlook. It is anticipated that key technical roles will be less affected by these cuts.