Intel to Lay Off 529 Oregon Employees Amid Major Global Restructuring

Intel is initiating another round of layoffs, this time affecting over 500 employees in Oregon, as the semiconductor giant undertakes a sweeping restructuring plan. The job reductions, scheduled to start on July 15, will impact staff at Intel’s Aloha and Hillsboro locations. Regulatory filings confirm that 529 positions will be eliminated in this round.

This latest move comes under the direction of Intel’s new CEO, Lip-Bu Tan, who has launched an aggressive cost-cutting strategy intended to streamline the organization and improve operational efficiency. While the company remains profitable in several business areas, Intel recently posted a $1.6 billion loss, prompting this decisive shift.

Intel previously issued a layoff notice in California, affecting 107 employees at its Santa Clara headquarters. A source familiar with the company's plans told Bloomberg that up to 20% of Intel’s global workforce may eventually be impacted by the ongoing restructuring.

In a formal statement, Intel said the Oregon layoffs are part of broader efforts to become “a leaner, faster and more efficient company.” The statement further added, “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”

The cuts are not limited to junior roles—key positions in engineering such as physical design, chip development, and cloud software, as well as leadership roles including a Vice President of IT, are among those being eliminated.

Intel is also winding down its automotive chip unit in Munich, Germany, which had focused on software-defined vehicle platforms. That division, led by veteran executive Jack Weast, is expected to see most of its staff laid off.

Affected employees are being given a choice between a 60-day notice period or a shorter four-week notice, both including nine weeks of pay and benefits.

One of the divisions most impacted appears to be Intel’s internal foundry, responsible for chip manufacturing. According to a memo shared with The Oregonian, up to 20% of manufacturing staff could lose their jobs.

Tan emphasized a cultural shift at Intel, moving away from equating leadership with the size of one’s team. Instead, the company will prioritize smaller, high-performance units focusing on mission-critical tasks. Additionally, Intel plans to outsource some of its marketing work to Accenture, which could integrate AI-driven customer engagement tools.

These developments follow a challenging 2024 for Intel, during which 15,000 jobs were already cut. If further reductions proceed as expected, this could represent one of the most significant transformations of Intel’s workforce in recent history.

The company’s moves are part of a larger trend in the tech industry, which has seen over 62,000 job losses in 2025 alone. Other major players like Microsoft, Google, Amazon, and Meta have also implemented sizable cuts in recent months.