Intel hits the brakes on its automotive business, and layoffs have started

Intel is winding down its automotive architecture division as part of a significant restructuring effort, resulting in layoffs for a majority of its staff. This decision was initially revealed in an internal memo shared with employees on Tuesday, later confirmed by the company to TechCrunch. Cory Pforzheimer, an Intel spokesperson, stated, "As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers." He emphasized that the company is committed to facilitating a smooth transition for its clients as it shuts down the automotive sector within its client computing group. While Intel's automotive branch may not have been a leading revenue source, it has played a crucial role in the development of automated vehicle technology and the trend toward 'software-defined vehicles.' The company made substantial investments in this area, particularly in the early days of autonomous vehicle technology that began around 2015. Notably, Intel's venture arm pledged $250 million towards automotive tech during that time. The acquisition of Mobileye in 2017 for $15.3 billion significantly boosted Intel's presence in the self-driving sector. Mobileye later transitioned into a standalone publicly traded entity, with Intel remaining a key shareholder. Additionally, in 2020, Intel's automotive division acquired Moovit, valuing the Israeli startup at $900 million. These layoffs arrive just six months after Intel displayed its automotive technology at the CES 2025 global tech trade show. Although Intel Automotive was not one of the company’s primary focuses, it aimed to pitch its software-defined vehicle technology to automakers, including an AI-enhanced system-on-chip slated for production by late 2025. However, concerns regarding the division's viability surfaced in April when CEO Lip-Bu Tan cautioned employees about impending layoffs due to declining sales and a bleak outlook. Earlier this month, Intel announced plans to cut 15% to 20% of its workforce in the Intel Foundry division, which is responsible for designing and manufacturing semiconductors for external clients.