Intel is preparing to lay off 15% to 20% of its foundry division workforce, potentially affecting between 8,170 and 10,890 employees globally, according to a report by Oregon Live. The first wave of layoffs is expected to begin in mid-July at the company’s Silicon Forest site in Oregon, with a second round potentially to follow by the end of the month.

This move follows Intel’s previously announced $10 billion cost-reduction plan, which began in August 2023 amid mounting financial pressure. As of December 28, 2024, the company had already reduced its global workforce from approximately 124,800 to 108,900. Last year alone, Intel’s Oregon operations laid off about 3,000 staff but still employ around 20,000 people.

Intel Foundry head Naga Chandrasekaran described the layoffs as necessary to address cost challenges and improve financial health. He told employees the decision-making would be guided by business priorities, individual performance, and funding strategies for ongoing projects.

Intel currently operates 15 wafer fabs across 10 global sites. While the company has not disclosed the exact number of employees involved in manufacturing, it has stated that roughly half of its workforce is engaged in production or manufacturing services. Based on that estimate, around 54,000 employees could fall under the foundry category—meaning a 15–20% reduction would impact over 10,000 workers.

The restructuring will not include buyout or voluntary exit options. Instead, Intel will implement targeted layoffs aimed at retaining its top talent. According to internal sources, roles affected may span factory-floor technicians, tool operators, and support personnel. However, key engineering staff, especially those working on advanced process technologies and EUV lithography, are expected to be spared.

Intel’s CEO Justin Chen, who assumed the role earlier this year, has been actively streamlining the company’s operations. In an April memo, Chen warned of forthcoming workforce adjustments, citing the need for both organizational efficiency and strategic talent retention.

The layoffs are not limited to manufacturing. Intel reportedly plans to reduce headcount across multiple departments by 15% to 20%, having already removed several layers of middle management in recent months.

While the cost cuts may help preserve Intel’s technical core, analysts warn they could reduce operational agility, slow response times to equipment issues, and increase the burden on remaining staff—potentially impacting productivity and morale.

Adding to the uncertainty are unresolved government subsidies. Intel has been promised $7.9 billion in CHIPS Act funding but received only $1 billion in 2023. The remaining disbursements are under review by the incoming Trump administration. Additionally, a $115 million funding commitment from the state of Oregon is contingent on meeting future hiring and revenue targets. Failure to do so could put that funding at risk.

Intel’s sweeping cuts mark a pivotal moment in its transformation strategy, as it seeks to regain competitiveness in a volatile semiconductor landscape while navigating cost pressures, automation, and geopolitical headwinds.