[News] Intel Reportedly Braces for Major Layoffs on July 15, Closes Automotive Unit

Amid reports that up to 20% of its factory workforce could be cut, Intel is set to begin major layoffs on July 15, with California employees among the first affected, as revealed by a latest report from CRN. Meanwhile, Intel is also shutting down its automotive unit in another significant step to streamline operations, as per OregonLive.

CRN suggests that Intel’s upcoming mid-July layoffs will cut about 107 jobs at its Santa Clara HQ, triggering California’s notice law for mass layoffs. The cuts reportedly reach across all levels and span a wide range of roles—from physical design engineers, AI and cloud specialists, and managers—underscoring the scope of Intel’s cost-cutting drive.

In late April, shortly after the new CEO Lip-Bu Tan took the helm, Intel signaled plans for upcoming layoffs, expected to begin in Q2 and continue over the following months. According to Tom’s Hardware, in its last major round in August 2024, Intel cut 15% of its workforce—about 15,000 jobs. Rumors now suggest the upcoming cuts could reach 20%, potentially affecting nearly 20,000 more employees.

As part of its cost-cutting push, Intel also aims to trim $1.5 billion in operating expenses over two years—targeting $17 billion in 2025 (a $500 million cut) and $16 billion in 2026 (an additional $1 billion reduction), the report adds.

Marketing Cuts Deepen, Automotive Unit Shuts Down

In addition to the aforementioned layoffs, another report from OregonLive suggests that Intel is shutting down its small automotive unit, laying off most of the team in another major move to slim down.

As noted by the report, though Intel doesn’t break out revenue or headcount for its automotive segment—considered a minor part of its business—it claims on its website that 50 million vehicles use its processors.

Intel holds a controlling share in Israeli firm Mobileye, a leader in self-driving car technology. According to OregonLive, the shutdown of Intel’s automotive division is unlikely to impact Mobileye’s activities directly.

On top of that, Intel reportedly told marketing staff last week that many roles will be outsourced to Accenture, which, boosted by AI, aims to better connect with customers. Most impacted employees will be notified by July 11, according to OregonLive.

Read more

• [News] Intel’s Rumored July Layoffs May Slash 15-20% of Factory Jobs, Oregon Hit Hardest
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(Photo credit: Intel)