Intel has notified employees at its Oregon manufacturing facilities that it will begin layoffs in mid-July, with the first round expected to conclude by the end of the month. The move is part of a broader restructuring of Intel Foundry aimed at streamlining operations and empowering engineering and technical teams.

In an internal memo, Intel leadership said the company is “taking steps to become a leaner, faster, and more efficient organization,” describing the layoffs as a necessary but difficult decision to improve execution and financial competitiveness. While the exact number of layoffs has not been disclosed, industry sources and employee reports suggest the cut could affect up to 20% of staff—potentially impacting more than 20,000 employees globally.

Intel declined to confirm the 20% figure but emphasized its focus on “removing organizational complexity and treating employees with care and respect.” The company's Oregon campus—home to some of Intel's most advanced fabs such as D1X and D1D—currently employs about 20,000 people and will be a key focus of the restructuring.

Intel CEO Pat Gelsinger previously announced a broader reform plan following the company's Q1 2025 earnings report, which includes job cuts, organizational changes, and the elimination of non-core product lines. As of the end of 2024, Intel employed 108,900 people globally.

While Intel is expected to preserve critical technical roles—such as process engineers and high-skill technicians supporting EUV and High-NA EUV systems—the company may cut roles made redundant by automation and cost-cutting, including fab operators, administrative staff, and lower-skilled technicians.

Employees from other business units also expect layoffs on a similar timeline, though local managers will have flexibility in how they implement cuts based on financial targets.

Online reports from Intel engineers suggest that some layoff lists were already submitted to labor unions last week, with notifications expected within the next few weeks and departures finalized roughly a month later.

The restructuring reflects the growing pressure on Intel to regain competitiveness in the global chip industry, as it invests heavily in foundry expansion while navigating financial headwinds and an evolving technology landscape.