- Intel reportedly planning to cut 15-20% of factory workers next month
- News comes as Intel reveals YoY revenue is flat, QoQ revenue could drop
- Lip-Bu Tan wants to streamline the workforce
Intel plans to lay off around 15-20% of its factory workforce as it looks to increase revenues and deal with ever-changing market conditions
A report from OregonLive claims the cost-cutting effort, scheduled to begin as soon as mid-July 2025, will primarily affect Intel Foundry, one of its core business divisions.
“These are difficult actions but essential to meet our affordability challenges and current financial position of the company. It drives pain to every individual,” manufacturing VP Naga Chandrasekaran reportedly shared in a memo with employees over the weekend.
Intel set for even more layoffs
The news comes as Intel continues to struggle with its financial performance – revenue remained flat year-over-year during its first quarter of 2025, with predictions for second-quarter revenue suggesting a quarter-over-quarter dip.
The company has already made significant reductions to its headcount, including terminating 15,000 contract in August 2024.
It’s believed that no voluntary buyouts will be offered this time, with Intel instead basing the layoffs on project priorities, performance and skill assessments. Factories relating to advanced chip development and workers in high-skilled roles could be among those less likely to be affected.
“We are taking a disciplined and prudent approach to support continued investment in our core products and foundry businesses while maximizing operational cost savings and capital efficiency,” CFO David Zinsner explained in the company’s first-quarter earnings release.
Besides saving cash, Intel’s approach to layoffs also centers around streamlining the workforce and removing inefficiencies by eliminating certain areas of middle management – something that new CEO Lip-Bu Tan pledged to do as he turns the company back into a profitable business.
TechRadar Pro has contacted Intel to confirm its plans, but the company did not respond immediately.
