Intel reportedly plans to cut factory workforce by up to 20%
US tech giant Intel is reportedly planning to reduce its factory workforce by 15% to 20%, impacting its manufacturing operations, reported OregonLive citing an internal memo.
This decision, communicated by vice president Naga Chandrasekaran, aims to address the company’s ongoing financial challenges.
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Layoffs are expected to begin in July 2025, following prior notifications to factory staff, the report said.
While Intel has not specified the exact number of affected employees, the company had approximately 109,000 employees at the end of 2024, with a significant portion in its Intel Foundry division.
The current layoffs could eliminate several thousand jobs, potentially exceeding 10,000.
This follows a previous reduction of 15,000 positions across the company in 2024, including 3,000 in Oregon, where Intel employs around 20,000 individuals, the highest in the state.
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By GlobalDataThe layoffs are part of a broader strategy to streamline operations and enhance efficiency, the report added.
Intel stated, “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
These layoffs will not include voluntary buyouts, with decisions based on investment priorities and employee performance.
Intel’s recent challenges have been driven by declining sales and increased competition in the PC and data centre markets, alongside difficulties in developing advanced chips for AI applications.
In a statement, Chandrasekaran said: “These are difficult actions but essential to meet our affordability challenges and current financial position of the company.”
In addition to the layoffs, Intel’s expansion plans have faced delays, including the postponement of its Ohio factory opening until 2030.
The company received $7.9bn in federal subsidies to support its operations, but much of this funding remains uncertain.
In March 2025, Nvidia and Broadcom announced the testing of Intel’s 18A process, which could result in contracts worth hundreds of millions.
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