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Intel has begun layoffs affecting 107 employees in Santa Clara as part of a restructuring plan. CEO Lip-Bu Tan aims to cut $500 mn in expenses this year and $1 bn next year.
Intel’s New CEO Lip-Bu Tan has been working on sweeping reforms at Intel, including a revamp of its AI roadmap and chip manufacturing operations.
In the latest round of layoffs, chipmaker Intel has started fresh job cuts with 107 employees connected to its headquarters in Santa Clara, California, according to a CRN report. The layoffs are part of a broader restructuring plan to turnaround the beleaguered company.
According to the report, Intel has informed this to the stated of California through a notice, which is required under the California’s Worker Adjustment and Retraining Notification (WARN) in case of a layoff impacting 50 or more than employees in a 30-day period.
In the notice, the company said the layoffs are expected to begin July 15.
In the WARN notice, Intel said employees have either received a 60-day notice ahead of their separation or a four-week notice that comes with nine weeks of pay and benefits “in lieu of further notice”, as per CRN.
Additionally, the company has also decided to close down its automotive chip business, which was based in Munich, Germany, according to The Oregonian citing an internal memo. According to the memo, “Intel plans to wind down the Intel architecture automotive business” and will lay off most of its workers in the section.
Last week, reports citing CEO Lip-Bu Tan‘s internal memo suggested that Intel was planning to lay off 15%-20% workers from its chip manufacturing division.
What Intel Spokesperson Says On Layoffs
In the latest statement, an Intel spokesperson, as reported by CRN, said, “As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
“We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work,” the spokesperson added.
CEO Lip-Bu Tan’s Turnaround Plans
Lip-Bu Tan, who assumed the role of Intel’s CEO in March, said in April that the company plans to cut operating expenses by $500 million this year and another $1 billion next year.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” he had said.
“We must balance our reductions with the need to retain and recruit key talent,” he said in the memo. “I will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed.”
Tan has been working on sweeping reforms at Intel, including a revamp of its artificial intelligence (AI) roadmap and chip manufacturing operations. A key element of his plan involves trimming layers of middle management, which he sees as an impediment to faster execution and innovation. In a recent company-wide town hall, Tan cautioned employees that “tough decisions” lay ahead.
Tan, 65, previously served as CEO of Cadence Design Systems and was a member of Intel’s board until August 2024. His appointment follows a challenging period for Intel, which reported a $19 billion annual loss in 2024 — its first in nearly four decades — and continues to lose market share to rivals like Nvidia and Arm, especially in the AI chip sector.
Intel also announced mass layoffs in August last year.
The layoffs at Intel are part of a broader trend of cost-cutting and restructuring across the tech sector. According to data from layoffs.fyi, over 63,443 tech workers have already been laid off across 147 companies in 2025 so far.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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