Intel Corporation has commenced a significant wave of job cuts impacting thousands of employees both in the U.S. and Israel. This follows the new CEO Lip-Bu Tan’s major cost-cutting and restructuring push to streamline operations and focus on core business areas.

The company started laying off employees on July 7, 2025, with notable reductions in its Foundry unit in Oregon and California headquarters. Intel plans to eliminate approximately 20% of its workforce, equating to several thousand positions across critical departments.

In Oregon, over 500 jobs across facilities in Aloha and Hillsboro are confirmed to be cut by mid-July. These cuts are expected to significantly impact thousands of workers, including technicians, engineers, and researchers engaged in microprocessor development.

In Israel, the layoffs extend to the Kiryat Gat facility for the first time, a plant considered outdated and under review for potential closure. Hundreds of employees in Israel’s key R&D and manufacturing hubs are expected to be affected.

Additionally, Intel will shut down its automotive chip division based in Munich, Germany, resulting in layoffs for most employees in that unit. The company is also outsourcing marketing operations to Accenture to reduce costs and uses AI for efficiency.

Intel has communicated that the layoffs are part of efforts to become a leaner, faster, and more efficient company by removing organizational complexity and empowering engineers to better meet customer needs and strengthen execution.

This restructuring comes amid a challenging market environment for Intel, facing stiff competition and declining sales, especially in sectors like artificial intelligence chips. Intel aims to position itself for the future by focusing more on core chips and data-center architecture.

Sources: TrendForce, OregonLive, Yahoo Finance, Economic Times, IndiaTimes