Intel layoffs begin: Company cuts roles across these teams to ‘remove organizational complexity and …'
Intel
has started laying off employees, beginning with 107 workers tied to its headquarters in Santa Clara, California, reports CRN. The move is part of a larger cost-cutting and restructuring plan announced by
CEO Lip-Bu Tan
in April this year to turn around the struggling semiconductor company.
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According to the report, the company has filed a notice under California's Worker Adjustment and Retraining Notification (WARN) Act. In the notice, Intel said that the layoffs will begin July 15. Employees will either be given a 60-day notice or a four-week notice with nine weeks' pay and benefits.
Intel job cuts: Roles impacted
As part of the latest
Intel layoffs
, the affected roles include 22 physical design engineers, three physical design engineering managers, three system-on-chip logic design engineers, three product development engineers, four design-for-test design engineers, six cloud software architects, four cloud software engineering managers and two cloud software development engineers.
'As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,' an Intel spokesperson told the publication.
'We are making these decisions based on careful consideration of what's needed to position our business for the future, and we will treat people with care and respect as we complete this important work,' the spokesperson added.
More job cuts likely across Intel divisions
Intel is reportedly planning to lay off 15–20% of workers in its chip manufacturing division, according to an internal memo cited by CRN. In April, CEO Tan had warned that reducing the company's workforce was inevitable as part of efforts to cut costs by $500 million this year and another $1 billion in 2026.
'There is no way around the fact that these critical changes will reduce the size of our workforce,' Tan wrote in a memo.
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'We must balance our reductions with the need to retain and recruit key talent,' he wrote. 'I will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed.'
He also criticized Intel's past focus on team size as a measure of performance.
'The best leaders get the most done with the fewest people,' Tan stated.
Intel to shift focus to core business
Intel is also shutting down its automotive chip division and outsourcing many marketing roles to consulting firm Accenture. The company said both moves are part of a plan to refocus on its core business of client and data center computing.
'We are focused on modernizing our digital capabilities to serve our customers better and strengthen our brand,' an Intel spokesperson said in a statement to CRN regarding the outsourcing plan.
'Accenture is a longtime partner and trusted leader in these areas, and this engagement will allow Intel and its partners to drive better business outcomes through simpler processes and programs,' the representative added.
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