Intel has announced it will lay off more than 5,500 employees as part of an aggressive effort to streamline operations and regain competitiveness. The company confirmed via WARN filings that key reductions will occur in California, Oregon, Arizona, and Texas. California will see approximately 1,935 job cuts, while Oregon—home to Intel’s largest U.S. workforce—will lose around 2,932 positions, a fourfold increase from earlier estimates. Arizona and Texas will also be significantly affected.
Under the leadership of CEO Lip‑Bu Tan, Intel is implementing a large-scale restructuring aimed at becoming leaner and more agile. These cuts reflect a broader strategy to reduce overhead and reposition the company following years of lagging performance in its core CPU and AI GPU markets. In April, Tan signaled deeper workforce reductions—potentially trimming more than 20% of staff—to sharpen Intel’s engineering and competitive focus.
The staff cuts affect a wide range of roles, including engineers, technicians, back-office employees, and middle managers. Intel had initially planned smaller reductions, but the scope has expanded due to ongoing market pressures and efforts to improve cost efficiency. This follows previous rounds of layoffs, totaling over 20,000 globally since 2024 when the company shuttered its automotive unit and cut 15,000 factory jobs.
Intel faces stiff competition from Nvidia and AMD in the AI chip space and has struggled to regain technological leadership. Its foundry ambitions have fallen short, eroding market share and limiting its ability to meet customer demands. The restructuring is part of a broader recovery plan to reduce operating expenses, support new chip processes like 18A and 14A, and restore confidence among investors and customers.
Despite the upheaval, Intel’s stock has shown modest gains, suggesting investor belief in the turnaround strategy. Looking ahead, the company’s future hinges on successful execution in chip manufacturing, foundry services, and restoration of its competitive edge in AI semiconductors.
This round of layoffs marks one of Intel’s most substantial workforce realignments in decades, underscoring the scale of transformation required to reposition the company in a dynamic, AI-dominated semiconductor era.
