Layoff News 2025: Why Intel Is Slashing Nearly 20% Of Its Workforce? Check Reason

Layoff News 2025: Intel is preparing to lay off up to a fifth of its factory workforce, marking one of the most significant cutbacks in the chipmaker’s history and delivering a major blow to one of its core business divisions.

The Oregonian/OregonLive obtained a copy of the memo, which four Intel employees verified. While the company declined to comment specifically on Saturday’s memo, it reiterated its broader stance on the restructuring.

What does Intel's VP say?

“These are difficult actions, but essential to meet our affordability challenges and the current financial position of the company. It drives pain to every individual,” wrote Intel Manufacturing Vice President Naga Chandrasekaran in an internal memo to employees on Saturday. The company is targeting job reductions of between 15% and 20%, with most of the layoffs scheduled to begin in July.

“We would treat people with care and respect as we complete this important work,” Intel said in a statement. 

“Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We are making these decisions based on carefully considering what’s needed to position our business for the future.”

“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 said. “We are also taking into consideration the factory operations impact.”

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Intel Layoffs In Past

Intel had previously announced the layoffs in April but had not disclosed the extent of the planned cuts. At the end of 2024, Intel employed around 109,000 people, although it’s unclear how many are part of its factory division, known as Intel Foundry. This unit includes a wide range of roles—from technicians on the manufacturing floor to specialised engineers and researchers.

So, if Intel lays off 20% of its workforce, that would amount to approximately 21,800 job cuts.

The upcoming layoffs are part of a broader cost-cutting effort. Intel is planning similar reductions in other parts of its business, but has not specified how many jobs each unit will lose. Employees expect the impact to vary by department.

Overall, the reductions are expected to eliminate several thousand positions, potentially more than 10,000 globally. The job cuts will affect Intel factories worldwide, with a particularly heavy impact in Oregon, where Intel employs 20,000 people, more than any other company in the state.

Last year, Intel slashed 15,000 jobs across the company, including 3,000 in Oregon. These moves come as Intel continues to grapple with falling sales, growing competition in personal computing and data centres, and its delayed entry into the booming AI chip market.

Unlike in 2024, when layoffs were supplemented by buyouts, early retirements, and attrition, this round will be more direct. Intel has said it does not plan to offer voluntary buyouts this time.

Intel Order Under Trump Scanner

In 2024, Intel received $1 billion of the $7.9 billion awarded under the federal CHIPS Act to support factory expansion in states including Oregon, Arizona, New Mexico, and Ohio. However, the rest of that funding is currently under review by the Trump administration.

Intel has also delayed the opening of its Ohio factory to 2030, signalling weak near-term demand for its chips. In Oregon, Intel secured $115 million in state funding, but that investment is conditional, subject to clawbacks if Intel fails to meet hiring or tax revenue goals tied to its expansion plans in Hillsboro.

New Intel CEO Lip-Bu Tan has focused on streamlining the company’s operations, cutting layers of management, and accelerating technology deployment. He has emphasised the importance of retaining top engineering talent. But with deep job cuts underway, achieving that goal may prove challenging.

Intel shares closed 3% higher on Monday at $20.74. The stock has traded between $17.67 and $37.16 over the past year.