In a seismic shift shaking the global tech industry, Intel Layoffs 2025 are making headlines as one of the largest workforce reductions in the company’s 56-year history. Under the newly appointed CEO Lip-Bu Tan, Intel Corporation has embarked on a high-stakes journey to restructure and refocus, responding to years of strategic missteps, financial losses, and mounting competition from rivals like Nvidia, AMD, and TSMC.
Intel Layoffs 2025: The Scale of the Layoffs
Intel entered 2025 with a workforce of 108,900 employees. By year’s end, that number is projected to drop to around 75,000 — a reduction of over 25,000 jobs or roughly 15% to 20% of the total headcount. The company began issuing layoff notices in July 2025, with the process expected to stretch across multiple months and impact both domestic and international offices.
This aggressive downsizing is not limited to rank-and-file employees; it includes engineers, senior managers, and even vice presidents. The scale of Intel Layoffs 2025 underscores a sweeping realignment meant to cut operational costs and eliminate bureaucratic roadblocks in favor of technical innovation.
CEO Lip-Bu Tan’s Strategic Overhaul
Appointed in March 2025, Lip-Bu Tan — a renowned venture capitalist and former CEO of Cadence Design Systems — wasted no time implementing a bold vision. His strategy hinges on re-engineering Intel’s bloated corporate structure, shifting the power back to technologists, and re-establishing Intel as a leader in semiconductor innovation.
The layoffs are a core component of a broader $10 billion cost-saving initiative that began in 2024. Tan’s plan includes flattening management layers, outsourcing non-core services, and refocusing investments on core capabilities such as client processors and data center solutions.
Intel Layoffs 2025: Regional Impact Highlights
Oregon: Intel’s Largest Hit
In Oregon, Intel is cutting 2,392 jobs, far more than the 529 initially forecasted. Oregon’s Washington County campuses—home to approximately 20,000 Intel employees—have seen the largest concentration of cuts. Engineers, middle managers, and even 7 vice presidents are among those let go. The site’s workforce will fall to under 18,000, the lowest in more than a decade, significantly impacting the state’s economy, which leans heavily on Intel’s high-paying jobs.
California: Heart of Innovation Feels the Pinch
Intel is eliminating 1,935 roles in California, including 410 in Santa Clara and 174 in Folsom. These layoffs span chip design engineers, software architects, and business management professionals. Notices were served starting July 15, with severance packages offering four weeks’ notice plus nine weeks of benefits in most cases.
Arizona: Manufacturing Giants Cut Back
Chandler, Arizona — a hub for Intel’s manufacturing operations — will see 696 jobs cut, a major jump from the 172 announced previously. These cuts come on top of 385 layoffs from late 2024, pushing local morale to new lows.
Global Reductions: Israel, Ireland, and More
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Israel: Hundreds are being let go at the Kiryat Gat plant, with Intel’s regional workforce expected to stabilize between 8,500 and 9,000.
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Ireland: While only 194 workers (4%) are affected, the strategic value of Ireland’s advanced node manufacturing plant has helped it escape deeper cuts.
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Texas: Job cuts are underway, but lack the transparency seen in other U.S. regions.
Divisions and Initiatives Restructured or Closed
Intel Layoffs 2025 are not limited to locations—they target entire business units:
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Intel Foundry Services: Facing a 15–20% workforce reduction, this division has been heavily affected, especially among technicians and R&D staff.
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Automotive Division: The company is exiting the automotive chip market entirely, shutting down its Munich-based unit and laying off the majority of staff.
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Marketing Department: Intel has outsourced global marketing to Accenture, leveraging AI and automation — a move that replaces countless roles with algorithms.
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Project Cancellations: Factory plans in Germany, Poland, and Ohio are now on hold. Operations in Costa Rica are being consolidated into Vietnam and Malaysia. Even the promising 18A and 14A chip nodes may be shelved unless strategic customers are secured soon.
Financial Performance & Competitive Landscape
The restructuring effort is occurring against a backdrop of harsh financial realities. In Q1 2025, Intel posted an $821 million loss, following a catastrophic $19 billion loss in 2024. First-quarter revenue stalled at $12.7 billion, barely matching the prior year. Q2 projections range from $11.2 billion to $12.4 billion—below Wall Street expectations.
Meanwhile, competitors are thriving. Nvidia’s dominance in AI chips, TSMC’s lead in advanced fabrication, and AMD’s gains in server markets have collectively exposed Intel’s vulnerabilities. Years of delays in advanced process nodes and internal mismanagement have left Intel struggling to stay relevant.
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