New Delhi: A leading American brand, Intel is set to undergo one of the biggest job cuts in its history with plans to lay off 15 per cent to 20 per cent of employees in its Intel Foundry division starting in July. The move could impact over 10,000 workers worldwide. In a message to staff, Intel Manufacturing Vice President Naga Chandrasekaran called the decision difficult but necessary, citing the company’s current financial situation. “These are very hard steps to take, but we need to do this because of the company’s current financial situation. I know this hurts many people,” he said, according to The Oregonian.
Intel has announced its third round of layoffs within a year. This time targeting its global foundry operations. The job cuts will impact employees across 15 chip manufacturing plants in 10 countries, affecting a wide range of roles — from factory technicians to researchers working on next-generation microprocessors, according to a report by The Oregonian.
The company, unlike previous layoffs, won’t be offering voluntary exits, early retirements, or severance packages this time. Instead, job cuts will be based on employee performance, roles, and the company’s future priorities. “These decisions are being made after looking closely at our projects, the kind of skills we need, and how each factory might be affected,” Chandrasekaran said. “We’re also reviewing which positions are still necessary and which aren’t.”
Intel’s upcoming layoffs are part of a broader restructuring plan led by the company’s new CEO, Lip-Bu Tan, who took charge in March this year. The job cuts mark a major step in his effort to cut costs and reshape Intel’s future. In April, Tan announced that over 20 per cent of the company’s workforce would be reduced as part of this overhaul. His goal is to trim excess management layers and refocus Intel on strong engineering and innovation. “I believe the best leaders achieve more with fewer people,” Tan said in a memo to employees.
Intel has already seen its workforce shrink from nearly 125,000 in 2023 to around 109,000 by the end of 2024.
Intel Faces Third Major Round of Layoffs in a Year
Intel is bracing for its third major round of job cuts in just one year. In August 2024, the company laid off about 15,000 employees—roughly 15 per cent of its workforce at the time—as part of a 10 dollars billion cost-cutting plan, which included buyouts, early retirements, and voluntary exits. New CEO Lip-Bu Tan in early 2025 announced even deeper cuts, reducing more than 20 pr cent of staff to streamline operations and revive Intel’s focus on engineering.
The latest layoffs target Intel’s foundry division but come at a time when the company is facing broader challenges. Rivals like Nvidia are surging ahead in the booming AI chip market, while Intel continues to lag behind. It’s also losing ground in the PC and data center segments.
Adding to the pressure are delays in federal funding promised under the U.S. CHIPS Act. Intel was expected to receive a 7.9 billion dollars subsidy, but much of that support is now in doubt as the Trump administration re-evaluates earlier funding commitments.
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