Intel will initiate a new wave of job cuts at its manufacturing sites beginning in mid-July 2025, as part of its broader restructuring efforts under new CEO Lip-Bu Tan. This marks the first major round of layoffs under Tan’s leadership since he took over in March. The process is expected to be completed by the end of July, though exact numbers and locations remain undisclosed.
An internal memo, reviewed by The Oregonian, confirmed the timeline but left out specifics. Sources close to the matter revealed that individual departments have been tasked with determining how to implement reductions while meeting financial targets set by senior leadership.
Restructuring strategy aims to streamline and refocus Intel
Intel stated that the cuts aim to eliminate organisational complexity and empower engineering teams, making the company more agile and better equipped to handle industry demands. “Removing organisational complexity and empowering our engineers will enable us to better serve our customers,” Intel said in a statement, promising that impacted workers would be treated with “care and respect.”
The move comes amid declining demand for PCs, stiff competition from Nvidia and AMD in AI chip development, and sluggish financial performance. Intel’s recent challenges have raised concerns among investors and employees, prompting a push for major changes.
Previous layoffs, new leadership, and uncertainty ahead
Although this is Tan’s first major workforce reduction, Intel has already cut 15,000 jobs in 2023 under former CEO Pat Gelsinger, including 3,000 positions in Oregon, where the company remains the state’s largest private employer.
Speculation about job losses had been building since April 2025, when Tan hinted at possible layoffs during an investor call but didn’t provide details. This lack of transparency has reportedly frustrated employees, especially in Oregon.
Despite his low public profile, Tan is expected to unveil a full transformation strategy later this year, which will likely focus on revamping Intel’s AI capabilities, expanding manufacturing, and restoring investor confidence.
As Intel pushes forward with its restructuring, market analysts and staff alike will be watching closely to see how the tech giant navigates this critical turning point in a rapidly evolving semiconductor market.