Intel has confirmed that it will be laying off more than 5,000 employees across the United States this week, a significant increase from the initial estimate of 4,000 job cuts. This revision comes after the company filed updated reports under the Worker Adjustment and Retraining Notification (WARN) Act. The majority of the layoffs will occur in Oregon and California, with significant cuts in Intel's operations across these states. In California alone, the company has doubled its original estimate, now laying off 1,935 workers. The Oregon facility, where Intel is the state's largest private employer, will face a fourfold increase in job cuts, with 2,392 positions being eliminated.
These job cuts are part of a broader restructuring plan spearheaded by Intel’s new CEO, Lip-Bu Tan, who is pushing for a leaner and more efficient company. Intel has cited the need to reduce organizational complexity to better serve its customers. In Oregon, the layoffs will impact around 12% of the local workforce, including engineers working on chip design, cloud software, and manufacturing, as well as senior leaders such as business heads and a vice president of IT. The internal foundry division, which is responsible for chip manufacturing, is expected to be one of the hardest-hit units, with up to 20% of its staff facing job losses.
Intel has also increased the number of layoffs in Arizona to 696, bringing the total layoffs across these four states to over 5,000. The company’s move is part of a strategic pivot after experiencing a $1.6 billion loss, despite still generating profits. The layoffs are expected to follow a similar process as previous rounds, offering voluntary exits or early retirements with a 60-day or four-week notice and nine weeks of pay and benefits for those affected.
Additionally, Intel is shifting its internal culture, emphasizing high-performing smaller teams instead of large teams. Some marketing functions will be outsourced to Accenture, with AI tools being used to manage parts of customer communication. These layoffs follow Intel’s decision in 2024 to cut 15,000 jobs as part of ongoing efforts to streamline operations and improve performance amid rising competition in the semiconductor industry.
