Intel braces for mass layoffs due to financial pressure in chip production

Up to 10,000 jobs could be affected across global operation

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Intel’s chip makers fear significant job losses as the company struggles with financial pressures. A leaked memo from Intel VP Naga Chandrasekaran indicates that the number of jobs in factories could be reduced by 15-20% starting next month. Chandrasekaran described the layoffs as a “tough but necessary” step to address the company’s financial pressures.

Although these cuts will affect factories around the world, Oregon, where Intel employs 20,000 people – more than any other location – is expected to bear the brunt. The memo indicates that this round of layoffs is primarily focused on manufacturing operations, but sources suggest that broader layoffs at multiple divisions are also underway, although specific numbers for each unit were not disclosed.

In total, these cuts could eliminate several thousand jobs, possibly more than 10,000 in total. Intel closed 2024 with about 109,000 employees, but the exact number within its manufacturing arm, Intel Foundry, which includes both factory engineers and advanced chip researchers, remains unclear.

Outside Oregon, Intel’s largest market, China, responsible for 29% of sales in 2024, also expects layoffs. Reports circulating on Chinese social media suggest Intel China could cut up to 20% of its workforce, with even larger reductions for some teams. A final decision on these layoffs is expected later this month.

Business AM

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