Intel to slash 10,000 jobs in July as factory layoffs escalate

Unlike earlier layoffs, Intel’s upcoming job cuts will exclude voluntary exits or early retirements, instead relying on performance reviews, skills assessments, strategic priorities, and operational impacts to determine which roles will be eliminated

Chipmaker Intel is preparing to lay off more than 10,000 employees in July, marking one of its largest workforce reductions to date. The layoffs will impact between 15% to 20% of its Foundry division, as part of a broader cost-cutting initiative under CEO Lip-Bu Tan.

The move will affect employees across 15 wafer fabrication plants in 10 global locations, including technicians, engineers, and R&D personnel. Intel Vice President of Manufacturing, Naga Chandrasekaran, confirmed the development in an internal memo, stating the decision was necessary to address the company’s affordability challenges and financial pressures. “These are difficult actions, but essential,” he wrote. “It drives pain to every individual.”

Unlike previous workforce reductions, this round will not include voluntary exits or early retirement options. Instead, job cuts will be based on performance reviews, skills assessments, and the company’s realigned strategic focus. According to Chandrasekaran, factors such as project investments and factory operations impact were also considered in the selection process.

Intel cuts jobs to stay competitive

This marks the third major layoff at Intel in less than a year. In August 2024, then-CEO Pat Gelsinger initiated the first wave, cutting 15,000 jobs to support a $10 billion savings plan. The current round is part of Tan’s accelerated restructuring strategy, which was announced after he assumed leadership in March 2025.

Tan has been vocal about creating a leaner, engineering-led Intel, pushing to cut more than 20% of the workforce globally. “The best leaders get the most done with the fewest people,” he told employees earlier this year. Since 2023, Intel’s workforce has declined from approximately 125,000 to about 109,000 by the end of 2024.

The company is also under pressure from delays in receiving expected U.S. CHIPS Act subsidies. A $7.9 billion federal support package remains on hold amid administrative reviews by the Trump administration. Meanwhile, rivals like Nvidia continue to surge ahead, benefiting from the explosive demand for AI chips—an area where Intel has yet to make significant gains.

Although critical roles in advanced manufacturing and process technologies may be spared, Intel is expected to eliminate roles that have become redundant due to automation. A formal announcement regarding the affected positions is anticipated in early July, with implementation expected soon after.