Intel Layoffs: Company Announces Over 5,000 Job Cuts In US, Says Report | Business News

Last Updated:July 19, 2025, 08:42 IST

The layoffs are mainly likely to hit employees in California, Oregon, Arizona and Texas.

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.

Intel Layoffs 2025: In a fresh round of job cuts, chipmaker Intel is laying off over 5,000 employees in the US, Manufacturing Dive has reported citing updated Worker Adjustment and Retraining Notification filings. Mainly, the layoffs are likely to hit employees in California, Oregon, Arizona and Texas.

The layoffs are part of a broader restructuring plan to turn around the beleaguered company.

The job cuts are estimated to be doubled for Santa Clara and Folsom to a total of 1,935 affected employees, according to the California WARN filings. The layoffs started in Folsom and Santa on July 11 and July 15.

“We are taking steps to become a leaner, faster and more efficient company… Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” Intel said in an email on July 9, according to Manufacturing Dive.

Last month, Intel started job cuts and sacked 107 employees connected to its headquarters in Santa Clara, California. In a WARN notice, the company had said the layoffs are expected to begin July 15.

Additionally, the company 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 month, 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.

Meanwhile, E-commerce giant Amazon has laid off “at least hundred” employees from its Amazon Web Services cloud computing division, news agency Reuters has reported. The exact number of job cuts has not been disclosed.

The move comes just a month after CEO Andy Jassy warned that adoption of generative AI tools would trigger a workforce reduction.

The layoffs at Amazon come after similar action by global giants like Microsoft, Meta, and CrowdSrike recently.

Many corporations are increasingly using artificial intelligence to write code for their software and adopting AI agents to automate routine tasks, as they look to save costs and cut reliance on people.

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.

Mohammad Haris

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More

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