Up to 20% of factory workforce affected globally starting July
Intel plans to lay off as much as 20% of its global factory workforce starting in July, according to an internal email reported by *The Oregonian* and confirmed by four Intel employees. The cuts will affect employees across the company’s semiconductor manufacturing operations, including roles ranging from floor technicians to specialized researchers.
While Intel employed approximately 109,000 workers at the end of 2024, it remains unclear how many of those work in Intel Foundry, the division targeted by the job reductions. The decision follows a broader reorganization effort by the chipmaker after eliminating 15,000 roles last year through attrition, buyouts, and early retirements.
Strategic cuts tied to manufacturing investment shifts
Chief Technology and Operations Officer Naga Chandrasekaran said in the internal memo that the layoffs would come with a reassessment of projects and roles. He emphasized a review of skill alignment and project prioritization, stating, “Some hard decisions around our project investments” are necessary.
The affected projects span Intel’s commercial semiconductor and packaging operations across Oregon, Arizona, New Mexico, and Ohio. While Intel has pledged $100 billion toward these U.S. investments, the company recently delayed the Ohio factory’s opening until 2030, citing strategic realignment.
CHIPS Act funding and political uncertainty
Intel expected to receive $7.86 billion under President Biden’s CHIPS and Science Act. However, only $2.2 billion has been disbursed so far. According to *The Columbus Dispatch*, the remainder of the funding remains uncertain amid policy changes under President Trump’s administration, which is reportedly reassessing previous CHIPS grants, as stated by Commerce Secretary Howard Lutnick.
The job cuts follow an April Bloomberg report suggesting that Intel aimed to reduce over 20% of its workforce. Though not confirmed at the time, CEO Lip-Bu Tan later acknowledged the need to streamline operations. He criticized excessive organizational complexity and called out teams with eight or more management layers, citing a perception that Intel had become “too slow, too complex and too set in our ways.”
