Intel Initiates Major Workforce Downsizing in Foundry Division
Intel is set to reduce it’s employee count substantially within the Intel Foundry division, with layoffs anticipated to begin in July. The company aims to decrease staff by approximately 15% to 20% in this unit, which specializes in semiconductor design, manufacturing, and packaging services for external customers.
Details and Consequences of the Workforce Reduction
The precise number of employees impacted has not been disclosed. As of mid-2024, Intel’s global workforce numbered around 108,900 individuals.As the Foundry division constitutes a focused segment within Intel’s overall operations,these cuts could result in several thousand job eliminations.
Leadership-Driven Strategic Realignment
this decision reflects strategic adjustments introduced by CEO Lip-Bu Tan following his recent appointment earlier this year. Tan is prioritizing a leaner organizational framework and concentrating resources on core engineering strengths.His strategy involves divesting non-essential business units to enhance Intel’s competitiveness amid escalating challenges across the global semiconductor market.
Recent Patterns in Employee Reductions
The upcoming layoffs follow a previous downsizing last August when Intel trimmed about 15% of its workforce-approximately 15,000 employees-across multiple departments. These successive reductions highlight ongoing efforts to improve operational efficiency during an industry downturn characterized by unpredictable chip demand and persistent supply chain disruptions.
Current Dynamics Within the Semiconductor Industry
the semiconductor market has faced considerable instability recently due to geopolitical conflicts and evolving consumer electronics preferences. As an example, worldwide chip sales dropped nearly 12% during early 2025 compared with the prior year-a trend compelling manufacturers like Intel to adjust their production approaches accordingly.
An Industry-Wide Response: Adapting Through Restructuring
Comparable workforce adjustments have been undertaken by other leading companies such as AMD and NVIDIA as they recalibrate staffing levels based on shifting market conditions. This pattern illustrates how major technology firms must carefully balance investment in innovation with cost control measures amid economic uncertainty.
