Intel Layoffs: Up to 20% of Intel Foundry Workers Affected

Intel Announces Further Workforce Reduction

Beginning next month, Intel is initiating another series of workforce reductions across the company.

Impact on Intel Foundry Division

According to an internal communication initially reported by The Oregonian, the semiconductor manufacturer intends to reduce its workforce within the Intel Foundry division by 15% to 20%. These reductions are scheduled to commence in July.

Intel Foundry is responsible for the design, manufacturing, and packaging of semiconductors intended for external customers.

Scale of the Layoffs

The precise number of employees affected by this action remains currently undetermined.

As of December 2024, Intel reported a total global workforce of 108,900 individuals, as detailed in the company’s annual regulatory filings.

TechCrunch has contacted Intel representatives to request further clarification.

Strategic Realignment Under New Leadership

This announcement isn't unexpected. Since Lip-Bu Tan assumed the position of CEO in March, he has consistently emphasized the necessity for the company to concentrate on its primary business areas.

Tan has also signaled a need to streamline the organizational structure and prioritize an engineering-focused approach.

Speculation regarding these particular layoffs surfaced as early as April.

Focus on Core Business Units

During the Intel Vision conference in March, Tan informed Intel’s clientele of plans to divest from non-essential business units.

Previous Workforce Adjustments

In August of the previous year, Intel implemented a significant workforce reduction, impacting approximately 15,000 employees, representing a 15% decrease in staff.