Intel has released a statement to workers regarding a round of layoffs across its Intel Foundry unit in Oregon, which are expected to begin in mid-July. Though there are no estimates as to how many workers will go, sources within the company have suggested this could be close to the 15,000 that were made redundant last year.
The move is part of an ongoing shift in Intel’s operations. Back in April, new CEO Lip-Bu Tan announced layoffs and an additional office day for workers.
As certain fabrication (fab) roles could be vulnerable to automation, there is the potential for laid off workers to be replaced by new technologies such as AI. Although, as many companies are backtracking on AI initiatives, it is unknown how much this will benefit Intel.
Intel Will Start Laying Off Factory Workers in Mid-July
Intel is set for another round of layoffs starting in mid-July, this time impacting the Intel Foundry unit in Oregon. Reportedly, the company communicated with employees about the layoffs, saying they are expected to end by the end of the month, and there are currently no estimates as to how many workers will lose their jobs.
The layoffs will affect fabrication, or fab workers, and appears part of a scheme to restructure its Intel Foundry manufacturing group and make it more focused on engineering and technical roles.
This just in! View
the top business tech deals for 2025 👨💻
The communication released by Intel to employees highlighted the seriousness of the decision, and how the step was necessary to improving the company’s financial position. In a statement to Tom’s Hardware, Intel stated: “Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”
Changes of Pace at Intel
In August of 2024, previous chief executive Pat Gelsinger laid off around 15,000 workers. As a result, Intel’s workforce stood at about 108,900 at the end of last year. Although no predictions have been released by Intel, sources from other divisions within the company have reported they expect a similar level of reductions.
Since the appointment of CEO Lip-Bu Tan in March, changes have come quickly for Intel. Two months ago, Tan announced that workers would be expected to come into the office four days a week, rather than three. He also announced layoffs, in which 20% of Intel’s workforce was made redundant.
The changes could potentially speak to a wider problem at Intel, which faces increasing competition from companies such as Nvidia. In the first quarter of 2025, the company reported a widened loss of $821 million. At the time, Tan said that the company needed to change its culture, and that it was: “too slow, too complex and too set in [its] ways.”
Possibility of Automation Across Some Roles
Included in the fab personnel vulnerable to layoffs at Intel, are jobs that are easily susceptible to automation, such as fab operators, logistics personnel and lower-skill technicians in highly automated areas. Therefore, we could see Intel replacing some of these workers with more efficient systems, potentially even AI.
Intel wouldn’t be the first company to do this alongside layoffs. In its letter to workers announcing its own set of layoffs, CrowdStrike CEO George Kurtz explained the potential of AI, which could indicate the company’s plan to introduce the technology in some capacity.
Whether this will work for Intel specifically, no one can be sure, particularly as some companies have regretted replacing laid off workers with AI. Klarna have most recently backtracked on an AI overhaul in its customer services department after reports of poor customer satisfaction.
