Intel to lay off up to 20% of Intel Foundry workers

In a significant restructuring move, Intel is set to initiate another round of job cuts next month. The semiconductor behemoth has announced plans to reduce its workforce in the Intel Foundry division by 15% to 20%, with layoffs commencing in July, as detailed in an internal memo reported by The Oregonian. Intel Foundry, which specializes in designing, manufacturing, and packaging semiconductors for external clients, is expected to see a considerable transformation. However, the exact number of employees affected remains uncertain. As of December 2024, Intel employed approximately 108,900 individuals, according to its annual regulatory filing. This announcement comes as no surprise to industry observers. Since taking over as CEO in March, Lip-Bu Tan has consistently emphasized the need for Intel to realign its focus on core business areas, streamline its organizational structure, and revive its commitment to engineering excellence. Speculation regarding these layoffs began circulating as early as April, following Tan's remarks at the Intel Vision conference, where he indicated plans to divest noncore units. Last August, the company already laid off about 15% of its workforce, equating to roughly 15,000 jobs.