Amid a wave of layoffs across industries, Intel Corporation has officially kicked off a major restructuring effort—its first under new CEO Lip-Bu Tan. First hinted at two months ago, the job cuts signal the beginning of a broader overhaul aimed at revitalising the struggling semiconductor giant. Tan had earlier emphasised his vision of transforming Intel into a “leaner, faster, and more efficient” organization.
According to a report by CRN that cited a Worker Adjustment and Retraining Notification (WARN) notice filed with the state of California, Intel is planning to layoff 107 employees connected to its headquarters in Santa Clara.
The notice, the report added, was dated last Wednesday and meets the WARN Act’s requirement for public notification when 50 or more employees are dismissed within a 30-day period at any one site in California.
Who is affected?
While the WARN filing did not disclose specific roles affected, the CRN report suggests the cuts are focused on Intel’s chip manufacturing division, potentially impacting up to 15–20% of its workforce. The figures are based on an internal memo that emerged last week, outlining a deeper workforce realignment inside Intel’s core business segments.
An Intel spokesperson confirmed the layoffs to CRN and reiterated that the company’s focus is on simplification and execution. “As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” the spokesperson said.
The spokesperson noted that the company has been thoroughly evaluating its operations to identify areas needing change in order to enhance its competitiveness in an increasingly volatile global market. “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 statement said.
The restructuring is part of Intel’s wider strategy to reduce operating costs by $500 million in 2025 and a further $1 billion in 2026. This was outlined by CEO Lip-Bu Tan in a company-wide memo issued in late April.
In the message, Tan had acknowledged that the transformation would result in job cuts, stating, “There is no way around the fact that these critical changes will reduce the size of our workforce.”
While the list of impacted roles is not released, the affected positions, per the CRN report, are believed to span engineering support, operational planning, and chip production roles.