Intel Expands Layoffs to 5,000 Employees Amid Restructuring Push Under New CEO

Intel has officially increased its workforce reduction numbers, now confirming over 5,000 layoffs across the United States this week. The move, a part of the company’s wider cost-cutting and restructuring initiative, comes under the leadership of newly appointed CEO Lip-Bu Tan. Earlier estimates had placed the number closer to 4,000, but updated WARN Act filings reveal a much larger impact, especially in key states such as Oregon and California.

Oregon, where Intel is the largest private employer, will bear a significant portion of the layoffs. Reports now confirm that the number of job cuts in the state has jumped to 2,392 — nearly four times higher than the initial estimate. California is also facing a major reduction, with Intel reportedly doubling its planned cuts to 1,935 employees.

Intel’s Arizona operations will also be affected, with the company confirming 696 layoffs in that region. These figures, according to a Manufacturing Dive report, collectively push the total number of job losses across four states beyond 5,000.

Despite its core businesses still generating revenue, Intel recently reported a quarterly loss of $1.6 billion. This financial setback, combined with increasing pressure from semiconductor competitors, appears to have prompted the aggressive cost-trimming strategy. The company’s leadership has framed the layoffs as essential to simplifying operations and enhancing customer service.

“This restructuring is aimed at reducing organizational complexity and better serving customers,” Intel said in a statement.

The cuts are widespread, impacting engineers involved in chip design, cloud software, and manufacturing. Several high-ranking executives — including a vice president of IT and multiple business unit heads — are reportedly among those affected. One of the hardest-hit areas is Intel’s internal foundry division, where up to 20 percent of employees may lose their jobs, according to a memo cited by The Oregonian.

In Oregon alone, the layoffs represent roughly 12 percent of Intel’s local workforce, underscoring the scale of the changes underway.

As with previous downsizing efforts, Intel is expected to offer some of the cuts through voluntary separation or early retirement programs. Affected employees will receive either a 60-day or four-week notice, along with nine weeks of pay and continued benefits.

Intel CEO Lip-Bu Tan emphasized that the company is not only revising its structure but also reshaping its internal culture. “Leadership will no longer be defined by the size of a person’s team,” he said. Intel plans to prioritize smaller, high-performing teams going forward.

In a bid to streamline further, some of Intel’s marketing responsibilities will be outsourced to consulting giant Accenture, which is expected to leverage AI to manage parts of customer engagement.

These latest job cuts follow a difficult 2024 for the chipmaker, when Intel eliminated 15,000 positions. Still, the company maintains that its current decisions were made after “careful consideration” and pledged to treat affected employees “with care and respect.”