In a sweeping move to cut costs and streamline operations, Intel has initiated significant layoffs and decided to shutter its automotive chip division. The strategic shift comes under the leadership of newly appointed CEO Lip-Bu Tan, who has emphasized a push for leaner operations and reduced bureaucracy.

According to a WARN Act filing, 107 employees based at Intel’s Santa Clara, California headquarters will be laid off starting July 15. These cuts are part of a larger wave expected to affect Intel’s global workforce next month, with reports suggesting up to 20 percent of employees could lose their jobs.

In addition to the California job cuts, Intel is also closing its automotive chip business, previously operating out of Munich, Germany. The unit, which was developing software-defined vehicle platforms, was led by long-time Intel executive Jack Weast. The majority of staff from that division are expected to be let go.

Despite reporting profits across various business segments, Intel posted a $1.6 billion loss recently, prompting this aggressive realignment. Impacted employees have been informed they will receive either a 60-day notice or a shorter four-week notice period, along with nine weeks of severance and benefits.

This restructuring has touched roles critical to Intel’s chip design initiatives, including physical design engineers, logic developers, and cloud software architects. Several senior positions are also being eliminated, such as engineering managers, business leads, and even a vice president of IT. Many of these roles are tied to key CPU and GPU development efforts.

An internal memo cited by The Oregonian earlier this month highlighted that manufacturing teams could also see a 20 percent reduction. Intel’s in-house chip production arm—central to its foundry ambitions—is likely to bear the brunt of this downsizing.

Tan, known for his no-nonsense leadership style, is steering Intel away from equating management success with the size of one’s team. “The company needs to focus on empowering lean, high-performing teams to take ownership of key initiatives,” he stated. Leadership will reportedly decide how to best align layoffs with strategic business goals.

Adding to the transformation, Intel is also outsourcing portions of its marketing function to Accenture. The consulting firm is expected to deploy AI solutions to handle customer engagement and communications.

This year’s wave of layoffs follows the company’s decision in 2024 to cut 15,000 jobs. With more reductions looming, Intel is preparing for what could be its most profound workforce reshaping in recent history.

Intel’s downsizing is unfolding amid broader turbulence in the tech industry. According to Layoffs.fyi, over 62,000 tech workers have lost jobs in 2025 alone, with major firms like Microsoft, Google, Amazon, and Meta also making significant cuts as they recalibrate for the future.