Intel has begun a significant round of job cuts in California, with over 100 employees at its Santa Clara office impacted by the ongoing cost-cutting and restructuring plan led by CEO Lip-Bu Tan. The layoffs are set to begin on July 15, 2025, and are part of a broader workforce reduction strategy aimed at streamlining operations and reducing bureaucracy. Intel disclosed these layoffs in a filing under California’s WARN Act, which requires notification when 50 or more employees are laid off within a 30-day period.
In addition to the layoffs, Intel has announced the closure of its automotive chip division, which operated out of Munich, Germany. This division, led by Intel veteran Jack Weast, focused on software-defined vehicle platforms. As a result, most employees from the automotive chip unit will lose their jobs.
The affected employees will receive a 60-day notice or, in some cases, a shorter four-week notice, along with nine weeks of compensation and benefits. The layoffs at the Santa Clara site primarily affect engineering roles crucial to Intel’s chip development, including physical design engineers, logic and product development specialists, and cloud software architects. Several senior leadership positions, such as engineering managers and business leads, are also being eliminated.
Intel is preparing for further reductions in its global workforce, with another 20 percent of its employees expected to be laid off in mid-July. The company’s manufacturing division, a core component of its foundry business, is expected to be hit the hardest. This is part of Tan’s broader vision to move away from a culture that equates leadership success with large teams and focus instead on lean, high-performing teams capable of taking ownership of key initiatives.
This round of layoffs follows Intel's previous significant workforce reductions in 2024, when 15,000 employees were let go. With the global tech industry facing similar challenges, Intel’s downsizing comes as major players like Microsoft, Google, Amazon, and Meta also announce job cuts as they reassess their strategies and spending.
As part of its restructuring, Intel is also outsourcing parts of its marketing operations to Accenture, which will use AI tools to manage customer communications. These changes reflect Intel’s efforts to streamline operations and stay competitive in an increasingly challenging tech landscape.
