Intel continues to cut its workforce. In an internal memo reviewed by our colleagues at OregonLive, Naga Chandrasekaran, Intel's vice president of manufacturing, revealed that the company intends to lay off between 15% and 20% of its workers. That's one-fifth of the workers employed in the multinational's factories. Most of the layoffs are expected to be announced over the next month. The evictions only affect Intel Foundry, Intel's chip foundry business.
This new wave of layoffs comes amid a complicated financial climate for Intel. In the first quarter of 2025, the company's revenue did not increase compared to the previous year, and is around $12.7 billion. Forecasts for the second quarter predict a decline compared to the first three months of the year. Analysts are predicting revenues of between $11.2 billion and $12.4 billion. Intel Foundry factories are accumulating colossal losses estimated at several billion dollars.
A difficult, but necessary decision
In the leaked email, Naga Chandrasekaran called the layoffs "difficult decisions" that "cause every individual to suffer," but "are essential to address our accessibility challenges and the company's current financial situation." With its back to the wall, Intel is seeking to cut costs. In response to the leak, Intel issued a statement. The American group explains that it wants to "remove organizational complexity and empower its engineers" in order to "better meet the needs" of its customers.
This time, Intel will not prioritize voluntary departures, but will dismiss employees based on their performance and the group's investment priorities. The firm plans "the elimination of certain hierarchical levels and positions" in a broad effort to restructure its organization.
Last year, Intel had already eliminated part of its workforce to achieve financial balance. The giant had separated from 15,000 employees during the summer, or 15% of its workforce. At the end of last year, Intel still had a total of 109,000 employees.
This new cost-cutting plan comes a few months after Pat Gelsinger stepped down as CEO last December. He was replaced by Lip-Bu Tan, the semiconductor giant's former CEO. Tan pledged to do everything he could to improve the group's efficiency and profitability, including eliminating unnecessary positions.
Source: OregonLive
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