Intel layoffs 2025: Company to cut off 20% of employees in July

Intel layoffs in July 2025: Intel lays off automotive staff as the chip giant prepares another wave of job cuts following the shutdown of its automotive division this July under CEO Lip‑Bu Tan’s restructuring plan . 

Intel confirmed that over 100 employees in Santa Clara will be notified under California’s WARN Act. At the same time, the full automotive unit—centered in Munich—is being wound down, with most staff set to lose roles. 

The move comes amid a wider industry cost‑cutting drive and follows May’s 15–20 % reduction plans across manufacturing and foundry teams. As Intel refocuses on core chips and data-center architecture, this latest cut highlights tensions between innovation ambitions and harsh economic realities. Read on to see who’s affected—and why this pivot matters for the semiconductor landscape.

Why is Intel doing layoffs?

As part of its continuous cost-cutting and restructuring plan, which is being spearheaded by the company's new CEO, Lip-Bu Tan, Intel has started to lay off workers in California. According to a CRN report, 107 Intel employees who work in the company's Santa Clara headquarters would be impacted by the layoffs. 

A report made by California's WARN Act, which requires notice when 50 or more employees are laid off within 30 days, revealed the job losses, which are set to start on July 15.

Which department will Intel shut down?

Intel is closing its Munich, Germany-based automotive chip division. Jack Weast, a veteran of Intel, led the division that developed software-defined vehicle systems. Most of the unit's workers are anticipated to lose their employment.

Have the Employees been informed about the layoffs by Intel?

Intel has begun laying off employees in California as part of its ongoing cost-cutting | Credit: Intel

The company has informed affected employees that they will receive nine weeks of pay and benefits in addition to a 60-day notice period or a shorter four-week notice period. 

In contrast, the California layoffs are part of a larger wave anticipated to affect Intel's global factory operations in mid-July, when the corporation is anticipated to lay off an additional 20% of its personnel.

The layoffs came after Tan declared that 15–20% of Intel's employees would be let go to optimize operations.

The layoffs affect numerous engineering positions essential to Intel's chip development. These include cloud software architects, logic and product development experts, and physical design engineers. 

Additionally, other top leadership positions are being abolished, including vice presidents of IT, business leads, and engineering managers. Workers at the Santa Clara location focus on design projects for CPUs and GPUs. 

Intel will also cut up to 20% of its production workforce, according to an internal memo that The Oregonian got earlier this month. The company's internal chip production section, a crucial part of its foundry business, is anticipated to be the most severely impacted.

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