Intel is moving ahead with another wave of layoffs, cutting 107 jobs at its Santa Clara, California, headquarters.
This decision, confirmed in a California WARN Act notice, is part of the company’s ongoing plan to streamline operations and reduce costs.
An Intel spokesperson told CRN that the layoffs are designed to help the company become “leaner, faster and more efficient.” The cuts are set to begin on July 15 and will impact employees at four of Intel’s Silicon Valley locations.
The spokesperson added, “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We’re making these choices carefully, with respect for those affected, and with a clear eye on the company’s long-term goals.”
Intel has been tightening operations over the past two years. The company reported an $821 million loss in Q1 2025 and has trimmed its global workforce from 125,000 to around 109,000 since 2023. Last year, Intel laid off roughly 15,000 employees as part of a $10 billion cost-cutting effort.
The latest layoffs coincide with Intel’s decision to shut down its automotive chip division in Germany. The company is also outsourcing parts of its marketing department to Accenture. Employees affected by the transition to Accenture will be offered support through a dedicated transfer program.
As part of its new cost-saving roadmap, Intel is targeting $500 million in savings for 2025 and $1 billion in 2026. Severance packages vary: some employees will receive nine weeks of severance pay, while others will be given a 60-day notice period, depending on their role.
This restructuring reflects a broader trend across the tech industry. Major players like Google, Meta, Amazon, and Microsoft have all announced significant layoffs throughout 2024 and into 2025. These companies, like Intel, are reevaluating their workforce needs post-pandemic as growth normalizes and AI shifts demand across different sectors.
Intel plans to sharpen its focus on its three main business areas: client computing, data centers, and foundry manufacturing. At the same time, it’s pulling back from non-core divisions, including automotive chips and internal marketing, as it realigns resources toward its highest-growth opportunities.
For now, Intel is hoping that by cutting complexity and boosting agility, it can return to profitability and maintain its standing in a highly competitive semiconductor industry. The company insists that those affected by these changes will be treated with care and respect.
