Intel is set to lay off 15–20% of its Foundry workforce starting in July, signaling one of the most significant workforce reductions in the semiconductor giant’s history. The move is expected to impact over 10,000 employees worldwide, nearly a fifth of its manufacturing division.
The cuts will hit Intel’s Foundry division across 15 fabs in 10 global locations, impacting roles from technicians to chip researchers. This time, the company does not plan to offer any buyouts or early retirements; layoffs will be based on performance and strategic need.
Engineers working on advanced chip tech and technicians handling key lithography tools are likely to be spared. Roles replaced by automation, however, are expected to be cut in this round of layoffs.
In an internal memo seen by The Oregonian, Intel Manufacturing Vice President Naga Chandrasekaran wrote, “These are difficult actions but essential to meet our affordability challenges and current financial position. It brings pain to every individual.”
"These reductions will be based on a combination of portfolio changes, level and position elimination, skill assessment for remaining positions, and some hard decisions around our project investments," Chandrasekaran explained in the memo. "We are also taking into consideration factory operations impact."
The foundry layoffs are part of Intel CEO Lip-Bu Tan’s cost-cutting drive. Since taking over in March, he has announced plans to cut more than 20% of Intel’s total workforce to streamline operations and revive its engineering-focused culture.
Intel’s Workforce fell from nearly 125,000 employes in 2023 to about 109,000 by end-2024. The company also posted an $821 million loss in Q1 2025, extending its ongoing financial struggles.
This marks Intel’s third major layoff round in one year. In August 2024, it cut 15,000 jobs under former CEO Pat Gelsinger. Earlier this year, CEO Tan announced over 20% workforce cuts as part of his turnaround plan.
Intel is struggling to keep up with rivals like Nvidia in the fast-growing AI market. At the same time, it’s facing delays in getting its $7.9 billion CHIPS Act funding, adding to the company’s ongoing challenges.
