- By Prateek Levi
- Thu, 19 Jun 2025 04:37 PM (IST)
- Source:JND
Intel Mass Layoffs: Tech giants laying off their staff is becoming a trend these days, and now Intel is preparing for one of its largest workforce reductions to date, with plans to lay off between 15% and 20% of its Intel Foundry Services (IFS) team starting in July. The cuts are expected to impact more than 10,000 employees worldwide—roughly one-fifth of the company’s manufacturing division—spanning across 15 fabrication plants in 10 different locations.
The job losses will touch a wide range of roles, from factory floor technicians to R&D professionals working on future chip designs. In an internal memo reviewed by The Oregonian, Intel Manufacturing Vice President Naga Chandrasekaran acknowledged the difficulty of the decision: “These are difficult actions but essential to meet our affordability challenges and the current financial position of the company. It drives pain to every individual.”
No Severance, No Voluntary Exits
In a notable shift from previous layoffs, Intel will not be offering early retirement packages or voluntary buyouts this time. Instead, the selection process will hinge on performance reviews, skill assessments, and how each position aligns with Intel’s strategic goals moving forward.
“These reductions will be based on a combination of portfolio changes, level and position elimination, skill assessment for remaining positions, and some hard decisions around our project investments,” Chandrasekaran explained. “We are also taking into consideration factory operations impact.”
A Core Part of CEO Tan’s Vision
The foundry layoffs are a critical part of a broader overhaul led by Intel’s new CEO, Lip-Bu Tan, who took the reins in March 2025. Just a month into his tenure, Tan revealed plans to slash more than 20% of Intel’s total workforce, positioning the move as essential to reshaping the company’s internal culture and cutting through layers of management.
“I'm a big believer in the philosophy that the best leaders get the most done with the fewest people,” Tan wrote in an earlier April memo to employees.
Since 2023, Intel’s headcount has already dropped from nearly 125,000 to about 109,000. The company’s ongoing struggles were highlighted again this year with a reported $821 million loss in Q1 2025.
Third Round of Major Cuts in a Year
This marks the third significant round of layoffs in less than 12 months. Under former CEO Pat Gelsinger, Intel slashed 15,000 jobs in August 2024—about 15% of the total workforce—as part of a $10 billion cost-saving initiative. Those earlier cuts were softened with buyouts and retirement options, unlike the harsher, performance-driven approach being taken now.
Tan’s restructuring comes at a time when Intel is feeling the squeeze from both inside and outside the industry. While competitors like Nvidia are surging thanks to the AI boom, Intel has struggled to find its footing. The company is also still awaiting key funding from the U.S. CHIPS Act, with its $7.9 billion subsidy package now under renewed scrutiny by the Trump administration.
Critical Engineering Roles Likely Safe
Despite the sweeping nature of the cuts, some technical positions are expected to be spared—particularly engineers working on next-gen process technologies and technicians responsible for high-stakes equipment like lithography machines. However, roles displaced by automation may not survive the restructuring.
As Intel tightens its belt and reorganises its priorities, the July layoffs could be a defining moment in its attempt to bounce back—or fall further behind.
