Intel to layoff 10,000+ employees, and why none of them will be getting any severance
Intel is preparing to lay off between 15% and 20% of its Intel Foundry workforce beginning in July, marking one of the largest job cuts in the semiconductor giant’s history. The layoffs are expected to affect more than 10,000 employees worldwide, representing roughly one-fifth of the company’s manufacturing division.“These are difficult actions but essential to meet our affordability challenges and current financial position of the company. It drives pain to every individual,” Intel Manufacturing Vice President Naga Chandrasekaran wrote in an internal memo to employees over the weekend, as seen by The Oregonian.
No severances for fired employees, will be selected based on performance evaluations
The cuts will impact Intel’s foundry division across 15 wafer fabrication plants at 10 locations globally, affecting roles ranging from factory floor technicians to researchers developing next-generation microprocessors. Unlike previous layoffs, Intel will not offer voluntary buyouts or early retirement packages, instead selecting workers based on performance evaluations and strategic priorities.“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.”Intel’s factory layoffs add to CEO Tan’s restructuring plans The foundry layoffs represent an acceleration of cost-cutting measures announced by CEO Lip-Bu Tan, who took leadership in March 2025. In April, Tan revealed plans to cut over 20% of Intel’s total workforce as part of a comprehensive restructuring aimed at eliminating bureaucracy and rebuilding the company’s engineering-focused culture. The 65-year-old executive has repeatedly emphasized the need to streamline operations and reduce management layers. “I’m a big believer in the philosophy that the best leaders get the most done with the fewest people,” Tan stated in an April memo to employees. Intel’s workforce has steadily declined from nearly 125,000 employees in 2023 to approximately 109,000 by the end of 2024. The company reported an $821 million loss in the first quarter of 2025, continuing a pattern of financial struggles that have plagued the chipmaker.Third Major layoff round in just one years These cuts represent the third major layoff round in the period of one year. Intel first eliminated 15,000 jobs in August 2024 under former CEO Pat Gelsinger, which represented over 15% of its workforce at the time. Those layoffs included buyouts, early retirement offers, and voluntary departures as part of a $10 billion cost-reduction plan. Earlier this year, new CEO Tan announced additional workforce reductions of over 20% as part of his turnaround strategy. The latest restructuring comes as Intel faces intense competition in PC and data center markets while struggling to capitalize on the artificial intelligence boom that has benefited rivals like Nvidia. The company has also grappled with delays in federal CHIPS Act funding, with much of its promised $7.9 billion subsidy package remaining uncertain under the Trump administration’s review of ongoing awards. Key technical roles, including engineers working on advanced process technologies and technicians managing critical lithography equipment, are expected to be largely protected from the cuts, while positions made redundant by automation may face elimination.
