Intel has begun laying off employees as part of a major cost-cutting and restructuring plan aimed at improving the company’s performance. The first round of job cuts has affected 107 workers at Intel’s headquarters in Santa Clara, California, as reported by CRN. These layoffs are part of a broader plan announced by CEO Lip-Bu Tan in April to streamline operations and reduce complexity within the organization. According to a notice filed under California’s Worker Adjustment and Retraining Notification (WARN) Act, the layoffs will officially begin on July 15. Affected employees will either receive a 60-day notice or a four-week notice along with nine weeks of pay and benefits.
Read more:Â Intel to Lay Off 10,000+ Employees Without Severance Pay
The impacted roles include a wide range of technical positions such as physical design engineers, engineering managers, system-on-chip logic designers, product development engineers, test engineers, and cloud software professionals. Intel stated that these steps are being taken to make the company leaner, faster, and more efficient by eliminating organizational complexity and empowering its engineering teams. The company emphasized that these decisions are being made with careful thought and a commitment to treating affected employees with care and respect.
More layoffs are expected, particularly in Intel’s chip manufacturing division, where the company may cut 15–20% of the workforce. CEO Tan had earlier indicated that job reductions were unavoidable in order to save \$500 million in 2025 and another \$1 billion by 2026. He also criticized the previous focus on team size as a measure of success, stating that the most effective leaders deliver the best results with the fewest people.
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In addition to the layoffs, Intel is shutting down its automotive chip business and outsourcing many of its marketing roles to consulting firm Accenture. These changes are part of Intel’s strategy to refocus on its core businesses, including client computing and data center solutions.
The company believes that partnering with Accenture will help modernize its digital capabilities, improve customer service, and simplify business processes to achieve better outcomes.
