[News] Intel’s Rumored July Layoffs May Slash 15-20% of Factory Jobs, Oregon Hit Hardest

Intel had hinted at more layoffs starting in July, but a memo seen by OregonLive now suggests the cuts could be far deeper than expected—reportedly slashing up to 20% of its factory workforce, striking at the core of its chipmaking business.

According to the report, in the memo, Intel VP Naga Chandrasekaran cited financial strain as the reason for the move, calling it a “tough but necessary” step. Most of the 15–20% cuts are set to roll out next month, the report adds.

After new CEO Lip-Bu Tan took the helm in April, he hinted at layoffs as part of broader restructuring. Now as the scale becomes clearer, the cuts will impact factories worldwide, but Oregon—where Intel employs 20,000, more than any other company—is expected to take the biggest hit, the report says.

While the latest round of layoffs is likely to be focused on the manufacturing operation, OregonLive indicates that Team Blue is preparing major layoffs across multiple divisions, though employees say the company hasn’t disclosed exact numbers for each unit.

In total, the cuts could wipe out several thousand jobs—or even exceed 10,000, the report projects.

The company had 109,000 employees by the end of 2024, though it’s unknown how many are part of Intel Foundry—its manufacturing arm that spans from factory technicians to advanced chip researchers, the report notes.

China—Intel’s biggest market, making up 29% of its 2024 sales—is also set to feel the impact. According to a recent ijiwei report, Chinese social media users revealed that Intel China may slash up to 20% of its workforce, with some teams facing even deeper cuts. The final decision is expected later this month, the report added.

Read more

• [News] Intel Reportedly to Launch Mid-July Layoffs, Mass Cuts to Hit Global Manufacturing
• [News] Intel Reportedly Demands 50% Margins for New Products in Profitability Push

(Photo credit: Intel)