Earlier in April, Intel’s CEO Lip-Bu Tan warned the company would make some roles redundant in Q2, 2025. A WARN (Worker Adjustment and Retraining Notification) notice recently issued by the company has confirmed that “roughly 107 employees” would be affected at Intel’s headquarters in Santa Clara.
The WARN notice indicates that the layoffs would begin on July 15, 2025. Infected employees have “either received a 60-day notice ahead of their severance or a four-week notice that comes with nine weeks of benefits,” according to IT publication CRN.
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The WARN Act mandates that employers in California inform employees 30 days before a layoff that impacts 50 or more people. Replying to a CRN report last Monday that said the company was planning to lay off 15 to 20 percent of its workforce from its chip manufacturing division, an Intel spokesperson said,
“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.
“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.”
A broad range of divisions will be impacted by this decision, including engineers in physical design, product engineering, system-on-chip logic design, design-for-test engineering, software engineering, managers within AI systems, IT, silicon design engineering, business project management, software products, and technology projects and strategy.
In line with the company’s plan to reduce its operating expenses by $500m this year and another $1bn next year, and refocus the company to its core datacenter portfolio, Intel is also shutting down its automotive business and will outsource marketing roles to Accenture, a global consulting company.
“We are focused on modernizing our digital capabilities to serve our customers better and strengthen our brand,” the company said in another statement sent to CRN. “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.”
Last summer, Intel laid off around 15,000 workers from its global workforce as part of its plan to save $10 bn.
