Leaks have revealed that Intel intends to lay off about 20% of the workforce in its Intel Foundry manufacturing division next month.
According to the website The Oregonian, the information came from an internal memo shared with employees last Saturday (14).
The statement, confirmed by four internal sources, also says the company will “treat people with care and respect while completing this important step.”
“Eliminating organizational complexity and empowering our engineers will allow us to better meet customer needs and strengthen our execution,” the memo says.
“We are making these decisions based on a careful analysis of what is necessary to position the business for the future.”
This would be the company’s second mass layoff in less than a year. In August 2024, Intel laid off 15,000 employees.
After that, the big tech had around 108,900 employees by the end of 2024. A 20% workforce reduction could result in more than 21,000 people losing their jobs.
The mass layoffs appear to be at the core of Intel CEO Lip-Bu Tan’s strategy, as he plans to restructure the company to focus on an “engineering-led” approach, cut “bureaucracy,” and reduce costs.
The last round of layoffs primarily targeted positions in sales, marketing, and administration. It’s still unclear exactly which roles will be cut this time. However, Tan is reportedly interested in eliminating some managerial positions at the company.
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