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June 2025 — Intel is preparing to lay off as many as 10,000 employees—up to 20% of its factory workforce—beginning in July, in one of the largest workforce reductions in its history. The cuts are part of a sweeping restructuring of Intel’s foundry division amid declining revenues and intensifying competition in the semiconductor sector.
In an internal memo, Manufacturing VP Naga Chandrasekaran cited affordability pressures and the need to streamline operations. Unlike previous rounds, this layoff will not include voluntary exit offers and will instead be based on performance, investment priorities, and project relevance.
The job reductions will span Intel’s 15 global wafer fabrication plants, affecting roles from factory technicians to R&D staff. However, engineers working on advanced process technologies and critical infrastructure are expected to be retained.
The move follows a 15,000-job reduction in 2024 and comes amid uncertainty surrounding pending CHIPS Act funding. CEO Lip-Bu Tan has emphasized the need for leaner operations and faster innovation to regain competitiveness in key growth areas like AI.
Intel says it is committed to treating affected employees with care and respect during the transition.
