Intel

Chipmaker Intel is shutting down its automotive division and laying off most of the employees working in that segment, according to a report by The Oregonian/OregonLive. The report is based on an internal message Intel sent to employees, which the publication reviewed.

“Intel plans to wind down the Intel architecture automotive business,” the company said in the message. It added that while it will fulfill existing commitments to customers, it will lay off “most” of the workers in that business.

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In a written statement to The Oregonian/OregonLive, Intel explained, “As we’ve said previously, we are refocusing on our core client and data center products to better serve our customers. As part of this work, we have decided to close the automotive business within our client computing group. We are working to ensure a smooth transition for our customers.”

Intel’s automotive business isn’t one of its major divisions, the company doesn’t even disclose its revenue or workforce numbers. However, Intel claims that its chips are currently used in around 50 million vehicles globally, powering electric cars, providing driver information, and optimizing vehicle performance.

The closure does not impact Mobileye, the Israeli self-driving tech company in which Intel holds a majority stake. Mobileye will continue to operate independently.

This move is part of a larger wave of cost-cutting under new CEO Lip-Bu Tan, who warned employees earlier of “several months” of layoffs amid falling sales and a gloomy revenue outlook. While Tan hasn’t publicly shared a revival strategy yet, internal changes are gradually surfacing.

Just this month, Intel told manufacturing staff that up to 20% of jobs in that unit could be cut starting July. Last week, the company informed marketing employees that it will outsource marketing operations to Accenture, resulting in more layoffs.

Together, these sweeping changes signal Intel’s push to become a leaner, more efficient company, but they also bring major uncertainty for its workforce.

Intel layoffs in California have started, with the tech giant cutting over 100 jobs at its Santa Clara headquarters. This move is part of CEO Lip-Bu Tan’s broader cost-cutting plan to eliminate 15–20% of the global workforce. Shockingly, the layoffs include key chip design engineers, software architects, and even high-level managers. In a major shift, Intel is shutting down its automotive chip division, ending its operations in Munich. The restructuring is meant to speed up execution and reduce bureaucracy. But many are questioning if letting go of critical talent is the right step for Intel’s future.

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Why is Intel laying off chip engineers and high-level managers?

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What’s happening to Intel’s automotive chip business?

How many Intel employees in California are losing their jobs?

Intel stock dips slightly after strong rally

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How did Intel perform recently?

June 24: Intel surged 6.4% , closing at $22.55 on strong trading volume (130M shares).

Intel surged , closing at on strong trading volume (130M shares). 1-week performance: +3.3%

+3.3% 1-month gain: +9.6%

+9.6% 3-month change: –6.0%

–6.0% Year-to-date: –27.7%

What’s Intel’s long-term strategy behind these layoffs?

Could this major restructuring help or hurt Intel’s future?

Intel layoffs hit over 100 employees in California, with more expected globally.

Engineering and leadership roles, including chip designers, are being cut.

Intel’s automotive chip division is being shut down, with jobs in Munich affected.

Layoffs begin July 15, according to California’s WARN Act notice.

CEO Lip-Bu Tan aims to eliminate bureaucracy and focus on execution speed.

What’s behind the recent moves?

Foundry revival: Optimism is growing around Intel’s 18A chip manufacturing process.

Optimism is growing around Intel’s 18A chip manufacturing process. Cost cuts: Intel is laying off 107 employees and winding down its automotive unit as part of a larger restructuring.

Intel is laying off 107 employees and winding down its automotive unit as part of a larger restructuring. Sector swings: Tech stocks are volatile, with Intel lagging behind rivals like Nvidia and AMD.

What’s next for Intel?

Earnings report due July 24

Market watching foundry updates and restructuring progress

Investor focus on cost management and recovery in chip demand

FAQs:

Intel layoffs have officially begun, with the tech giant cutting hundreds of jobs across California. The company is letting go of engineers, software architects, and even high-level executives, marking one of its biggest rounds of restructuring in recent years. The job cuts are part of a broader cost-cutting strategy driven by CEO Lip-Bu Tan, who had earlier warned that 15% to 20% of Intel’s global workforce could face layoffs.In California alone, 107 employees based at Intel’s Santa Clara headquarters have been notified of job termination. These layoffs, scheduled to start July 15, were confirmed through a WARN Act filing with the state, which mandates public disclosure when 50 or more employees are laid off within 30 days.Intel layoffs are not limited to administrative roles. Surprisingly, the cuts include critical chip design engineers, logic developers, cloud software architects, and project managers. CRN reported that even senior positions like a Vice President of IT and multiple technology strategy leads are being eliminated.The layoffs affect 22 physical design engineers, three engineering managers, and several other developers tied to Intel’s core CPU and GPU design teams. These aren’t support roles — these are the people responsible for the chips powering Intel’s main business lines.Intel says the move is aimed at streamlining operations and eliminating unnecessary management layers. But for many, the inclusion of high-value technical talent in these layoffs raises serious questions about Intel’s direction and execution strategy.One of the biggest shocks in the Intel layoffs is the complete shutdown of its automotive chip division. Intel is exiting the automotive market altogether — a dramatic decision considering the industry’s rapid growth toward electric and software-defined vehicles.This unit was part of Intel’s Client Computing Group and was led by Jack Weast, a respected Intel Fellow and former VP at Mobileye. The team operated primarily out of Munich, Germany, working closely with major European automakers.But now, that entire division is being scrapped. Most of the employees are expected to lose their jobs as Intel refocuses its efforts on core areas like client computing and data center solutions. It’s a major shift for a company that once had ambitions to lead in automotive-grade semiconductors.According to the WARN Act notice, 107 Intel workers at its Santa Clara headquarters are set to be laid off starting July 15. Affected employees have either received a 60-day notice or a shorter four-week notice, along with nine weeks of compensation and benefits.This wave of Intel layoffs is just part of a larger global reduction, with CEO Lip-Bu Tan confirming earlier this year that 15% to 20% of Intel’s workforce could be impacted. These cuts are a direct result of Intel’s ongoing attempt to cut costs, streamline operations, and restructure management hierarchy.Intel Corp. (INTC) is trading at, downtoday after a recent rally lifted the stock earlier this week.CEO Lip-Bu Tan is pushing for a leaner, faster Intel. In a company-wide memo from April, Tan criticized Intel’s former practice of tying leadership performance to the size of one’s team. Going forward, Intel’s performance metrics will focus on execution and efficiency — not headcount.The goal is to remove unnecessary bureaucracy and speed up decision-making across the company. This strategy involves reducing overlapping roles and consolidating layers of management — even if it means letting go of some valuable engineers and architects in the process.Intel layoffs may free up resources and reduce operational drag, but they also risk losing critical talent at a time when chipmaking is more competitive than ever. With AMD, Nvidia, and Apple ramping up innovation, Intel can’t afford to fall behind.Shutting down the automotive division also means walking away from a major growth sector. While it might help Intel sharpen its focus on client and data center products, it also limits diversification — a move that could backfire if core markets slow down.Only time will tell if this restructuring brings the agility Intel is hoping for, or if it marks a deeper retreat from sectors where competitors are gaining ground.Intel is cutting jobs to reduce costs and simplify its management structure.Yes, Intel is shutting down its automotive chip division as part of a company-wide restructuring.