Intel has announced a significant restructuring move that will see the loss of 107 jobs across four locations in Santa Clara, California, as part of a global downsizing push. The layoffs, which take effect July 15, are the initial phase of chief executive Lip-Bu Tan´s plan to shrink the semiconductor giant’s factory workforce by as much as 20%. According to filings with California’s Employment Development Department, job cuts will touch Intel’s Robert Noyce Building and its campuses on Juliette Lane and Laurelwood Road, with the Mission College Boulevard headquarters alone losing 76 roles.
This wave of reductions arrives as Intel attempts to rebound from a lengthy sales slump and intensifying competitive pressure in the semiconductor industry. The company is targeting the elimination of over 10,000 roles globally, with a primary focus on the Foundry division. Both factory floor staff and research personnel are affected. The downsizing is, in part, a response to missed opportunities in the artificial intelligence chip sector and market share losses to rivals like Nvidia. In an internal memo, Intel vice president of manufacturing Naga Chandrasekaran acknowledged the hardship caused but stressed the financial necessity of the restructuring, stating it is essential to address affordability and stabilize the company’s financial position.
Alongside the manufacturing cutbacks, Intel is shutting down its automotive division and laying off most of the team, despite its processors powering more than 50 million vehicles worldwide. The automotive business was not core to Intel’s broader strategy, and the company will now double down on its mainstay client and data center portfolio to recover competitiveness. These moves follow a first-quarter financial loss and a headcount reduction from 125,000 in 2023 to roughly 109,000 this year. Intel’s stock fell around 1% following the news, underscoring the market’s wary response to both the job losses and continued operational shifts as the company fights to reclaim its footing in a rapidly evolving sector.
