Intel will eliminate 15% to 20% of its factory workforce beginning in July, a move expected to cut more than 10,000 positions worldwide and rank among the deepest layoffs in the chipmaker’s 57-year history.
The reductions target Intel’s Foundry division, affecting everyone from production-line technicians to researchers working on next-generation semiconductors. Roughly half of the company’s 109,000 employees work in manufacturing, though Intel has not confirmed exact figures.
Naga Chandrasekaran, vice president of manufacturing, described the cuts as painful but unavoidable in a company-wide memo sent last week. “These are difficult actions but essential to meet our cost challenges and current financial position,” he wrote.
Oregon will absorb a heavy share of the impact. The state hosts 20,000 Intel workers, and the company’s expansion there now faces uncertainty because $115 million in state subsidies depend on hiring targets, according to OregonLive, which first reported the layoffs.
An Intel spokesperson said the company is becoming “leaner, faster, and more efficient,” adding that removing organizational complexity will strengthen execution and customer service.
The layoffs follow years of declining revenue and a failure to capitalize on the artificial intelligence chip boom now led by Nvidia. Intel reported an $821 million loss in the first quarter of 2025 and has reduced headcount from nearly 125,000 in 2023.
New CEO Lip-Bu Tan, who joined in March, has promised to strip away bureaucracy. “The best leaders get the most done with the fewest people,” he wrote in an April memo.
Most job cuts will land in July, with no voluntary buyouts offered. Positions will be eliminated based on investment priorities, performance, and skills required for future projects.
Federal CHIPS Act subsidies could also face review under the Trump administration. Meanwhile, investors appeared unfazed, as Intel shares rose about 2% to $21.11 on Tuesday.
