Intel is planning to lay off more than 10,000 employees starting in July 2025. These job cuts will affect about 15% to 20% of its Intel Foundry division, which includes its chip-making factories. This is one of the biggest layoffs in the company’s history.
No Severance Pay, No Voluntary Exit Options
This time, employees will not receive any severance packages or early retirement offers. Instead, Intel will choose who gets laid off based on performance reviews, current roles, and which jobs are no longer needed. The company is focusing on keeping positions that are critical to factory operations and future projects.
In an internal message, Naga Chandrasekaran, VP of Manufacturing, said the layoffs are tough but necessary due to financial challenges. He explained that roles will be removed based on skill needs, factory impact, and the company’s new priorities.
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Jobs Affected Across Multiple Locations
The layoffs will hit workers in 15 chip factories across 10 global locations. Those affected include factory workers, researchers, and others working on new chip technologies. However, key technical roles, like engineers and lithography technicians, are expected to be safe — especially those not easily replaced by automation.
Part of Bigger Restructuring by New CEO
This layoff is part of a bigger cost-cutting and restructuring plan introduced by new CEO Lip-Bu Tan, who took over in March 2025. Tan wants to make Intel leaner and more focused on engineering. In an earlier message, he said, “The best leaders get the most done with the fewest people.”
Intel had around 125,000 employees in 2023, but that number has already dropped to 109,000 by the end of 2024. In the first quarter of 2025, Intel also reported a $821 million loss, adding to its financial struggles.
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Third Major Layoff in a Year
This is the third big round of layoffs in just one year:
- In August 2024, Intel cut 15,000 jobs under former CEO Pat Gelsinger.
- In early 2025, CEO Tan announced more cuts affecting 20% of the total workforce.
- Now, this new layoff affects a large part of the manufacturing division.
Falling Behind in the AI Race
Intel is also facing pressure from rivals like Nvidia, who are leading the market in AI chips. Delays in receiving funds from the U.S. CHIPS Act have also slowed down Intel’s progress. Although Intel was promised $7.9 billion, much of that funding is now under review by the Trump administration.
