Intel layoffs 2025: Design engineers, software architects lose jobs - these key divisions are next

Time of India

3 days ago

Intel layoffs hit California hard: hundreds of chip engineers let go, automotive division shut down in major restructuring move-
Intel layoffs have officially begun, with the tech giant cutting hundreds of jobs across California. The company is letting go of engineers, software architects, and even high-level executives, marking one of its biggest rounds of restructuring in recent years. The job cuts are part of a broader cost-cutting strategy driven by CEO Lip-Bu Tan, who had earlier warned that 15% to 20% of Intel's global workforce could face layoffs.
In California alone, 107 employees based at Intel's Santa Clara headquarters have been notified of job termination. These layoffs, scheduled to start July 15, were confirmed through a WARN Act filing with the state, which mandates public disclosure when 50 or more employees are laid off within 30 days.
Why is Intel laying off chip engineers and high-level managers?
Intel layoffs are not limited to administrative roles. Surprisingly, the cuts include critical chip design engineers, logic developers, cloud software architects, and project managers. CRN reported that even senior positions like a Vice President of IT and multiple technology strategy leads are being eliminated.
The layoffs affect 22 physical design engineers, three engineering managers, and several other developers tied to Intel's core CPU and GPU design teams. These aren't support roles — these are the people responsible for the chips powering Intel's main business lines.
Intel says the move is aimed at streamlining operations and eliminating unnecessary management layers. But for many, the inclusion of high-value technical talent in these layoffs raises serious questions about Intel's direction and execution strategy.
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What's happening to Intel's automotive chip business?
One of the biggest shocks in the Intel layoffs is the complete shutdown of its automotive chip division. Intel is exiting the automotive market altogether — a dramatic decision considering the industry's rapid growth toward electric and software-defined vehicles.
This unit was part of Intel's Client Computing Group and was led by Jack Weast, a respected Intel Fellow and former VP at Mobileye. The team operated primarily out of Munich, Germany, working closely with major European automakers.
But now, that entire division is being scrapped. Most of the employees are expected to lose their jobs as Intel refocuses its efforts on core areas like client computing and data center solutions. It's a major shift for a company that once had ambitions to lead in automotive-grade semiconductors.
How many Intel employees in California are losing their jobs?
According to the WARN Act notice, 107 Intel workers at its Santa Clara headquarters are set to be laid off starting July 15. Affected employees have either received a 60-day notice or a shorter four-week notice, along with nine weeks of compensation and benefits.
This wave of Intel layoffs is just part of a larger global reduction, with CEO Lip-Bu Tan confirming earlier this year that 15% to 20% of Intel's workforce could be impacted. These cuts are a direct result of Intel's ongoing attempt to cut costs, streamline operations, and restructure management hierarchy.
Intel stock dips slightly after strong rally
Intel Corp. (INTC) is trading at
$22.20
, down
1.5%
today after a recent rally lifted the stock earlier this week.
How did Intel perform recently?
June 24:
Intel surged
6.4%
, closing at
$22.55
on strong trading volume (130M shares).
1-week performance:
+3.3%
1-month gain:
+9.6%
3-month change:
–6.0%
Year-to-date:
–27.7%
What's Intel's long-term strategy behind these layoffs?
CEO Lip-Bu Tan is pushing for a leaner, faster Intel. In a company-wide memo from April, Tan criticized Intel's former practice of tying leadership performance to the size of one's team. Going forward, Intel's performance metrics will focus on execution and efficiency — not headcount.
The goal is to remove unnecessary bureaucracy and speed up decision-making across the company. This strategy involves reducing overlapping roles and consolidating layers of management — even if it means letting go of some valuable engineers and architects in the process.
Could this major restructuring help or hurt Intel's future?
Intel layoffs may free up resources and reduce operational drag, but they also risk losing critical talent at a time when chipmaking is more competitive than ever. With AMD, Nvidia, and Apple ramping up innovation, Intel can't afford to fall behind.
Shutting down the automotive division also means walking away from a major growth sector. While it might help Intel sharpen its focus on client and data center products, it also limits diversification — a move that could backfire if core markets slow down.
Only time will tell if this restructuring brings the agility Intel is hoping for, or if it marks a deeper retreat from sectors where competitors are gaining ground.
Intel layoffs hit over 100 employees in California, with more expected globally.
Engineering and leadership roles, including chip designers, are being cut.
Intel's automotive chip division is being shut down, with jobs in Munich affected.
Layoffs begin July 15, according to California's WARN Act notice.
CEO Lip-Bu Tan aims to eliminate bureaucracy and focus on execution speed.
What's behind the recent moves?
Foundry revival:
Optimism is growing around Intel's 18A chip manufacturing process.
Cost cuts:
Intel is laying off 107 employees and winding down its automotive unit as part of a larger restructuring.
Sector swings:
Tech stocks are volatile, with Intel lagging behind rivals like Nvidia and AMD.
What's next for Intel?
Earnings report due July 24
Market watching foundry updates and restructuring progress
Investor focus on cost management and recovery in chip demand
FAQs:
Q1: Why is Intel laying off chip engineers in California?
Intel is cutting jobs to reduce costs and simplify its management structure.
Q2: Is Intel closing its automotive chip business?
Yes, Intel is shutting down its automotive chip division as part of a company-wide restructuring.