Intel has begun a series of layoffs across multiple teams within the company. The job cuts are part of an effort to streamline operations and reduce organizational complexity. The layoffs have affected various roles in different divisions.
However, the specific numbers and departments impacted have not been disclosed. Industry analysts believe this move may be just the beginning of more widespread layoffs as Intel continues to restructure. By reducing its workforce and eliminating certain positions, the company aims to eliminate redundancies and streamline its business processes.
According to a notice sent by Intel last week, the semiconductor giant plans to lay off approximately 107 employees connected to its headquarters in Santa Clara, California. The notice is required by the state’s Worker Adjustment and Retraining Notification (WARN) Act. An Intel spokesperson confirmed that the company intends to lay off 15 to 20 percent of workers from its chip manufacturing division.
“As we announced earlier this year, we are taking steps to become a leaner, faster, and more efficient company,” the representative said. The layoffs are expected to begin on July 15, as indicated in the WARN notice.
Intel to streamline operations amidst layoffs
Affected employees have either received a 60-day notice of their separation or a four-week notice, accompanied by nine weeks of pay and benefits. The impacted roles include physical design engineers, system-on-chip logic design engineers, cloud software architects, and various management positions across different departments. Intel has emphasized the need to streamline management roles to expedite decision-making and minimize bureaucracy.
The company believes that the best leaders can accomplish more with fewer people. Reports suggest that Intel also plans to outsource many marketing roles to the global consulting firm Accenture. Additionally, the company has decided to shut down its automotive chip business, resulting in most of that division’s workers losing their jobs.
Intel confirmed these moves, stating that the outsourcing plan aims to modernize its digital capabilities and better serve customers. The decision to wind down the automotive business is part of a strategy to refocus on the company’s core client and data center portfolios. The automotive division, which was part of the Client Computing Group, designed and built chips for infotainment systems, instrument clusters, and other automotive controls.
Despite significant investments in this area, Intel’s new CEO, Lip-Bu Tan, has chosen to reduce the workforce to steer the chipmaker back on track. Intel remains a majority stakeholder in Mobileye, a self-driving car technology company it acquired in 2017 but later spun out as a standalone entity. These layoffs and strategic shifts mark a significant change in direction for Intel as it seeks to refocus its resources on more profitable sectors within its extensive technology portfolio.
A seasoned technology executive with a proven record of developing and executing innovative strategies to scale high-growth SaaS platforms and enterprise solutions. As a hands-on CTO and systems architect, he combines technical excellence with visionary leadership to drive organizational success.
