Introduction
In a bold and painful reset, Intel is preparing for one of the largest rounds of layoffs in its history. Over 10,000 employees will be let go this July, with entire departments—including its Munich-based automotive division—shut down.
Under the leadership of newly appointed CEO Lip-Bu Tan, the tech giant is refocusing its strategy, cutting costs, and prioritizing core areas like AI, cloud, and advanced chip design.
For many, it’s a hard goodbye. For Intel, it’s a high-stakes bet on long-term survival.
techovedas.com/lip-bu-tan-as-new-intel-ceo-a-power-move-that-could-change-everything
Quick Overview: What’s Happening at Intel in July 2025?
Automotive Chip Division Closure: Intel is shutting its Munich-based automotive unit.
10,000+ Job Cuts Globally: Major layoffs expected across foundry and manufacturing.
Santa Clara Layoffs Confirmed: 107 staff let go in California per WARN Act filings.
Leadership Overhaul: Multiple VP and senior roles axed.
Refocus on Core Business: Intel bets on core chips, AI, and cloud infrastructure
ttps://www.yolegroup.com/product/report/overview-of-the-semiconductor-devices-industry-h1-2025
Intel Automotive Division Shuts Down
Intel’s automotive division—based in Munich and once led by veteran Jack Weast—will be fully closed this July. The unit had focused on software-defined vehicles and autonomous tech platforms.
But Intel is now pulling out of the automotive race completely. Most of the staff in the division will be laid off.
This move follows Intel’s quiet sale of Mobileye shares earlier this year, signaling its step back from the automotive sector.
Competitors like Qualcomm and Nvidia are now dominating the EV and ADAS chip race.
/techovedas.com/intel-q1-2025-deep-losses-mass-layoffs-and-a-chip-gamble-in-a-tariff-storm/
Santa Clara Layoffs Confirmed Under WARN Act
Intel filed a WARN notice with the State of California, confirming 107 layoffs in its Santa Clara headquarters. The company notified employees they will receive:
| Severance Package | Details |
|---|---|
| Final Notice Period | 60 days or a 4-week fast-track |
| Pay & Benefits Continuation | 9 weeks post-notice |
These roles include chip design engineers, logic and architecture specialists, and software professionals working on next-gen CPUs and GPUs.
techovedas.com/intel-delays-28-billion-ohio-chip-factory-until-2030-whats-behind-the-setback
Global Foundry Layoffs: 20% Reduction Ahead
According to an internal memo leaked to The Oregonian, Intel plans to cut up to 20% of its production workforce in mid-July. This includes factory staff and engineers from its internal chip manufacturing teams—key parts of Intel Foundry Services (IFS).
CEO Lip-Bu Tan, who joined Intel in 2024, has called for a 15–20% headcount cut across multiple business units to make operations leaner and more cost-efficient.
Why This Restructuring Matters
Intel’s massive layoffs aren’t just about trimming fat—they reflect deeper problems. Over the past two years, Intel has faced:
- A 12% YoY drop in data center revenue (Q1 2025)
- Shrinking margins in chip manufacturing
- Delays in its Intel 18A node against TSMC’s 2nm roadmap
- Intense AI chip competition from NVIDIA and AMD
Tan’s strategy is to double down on high-margin products like AI accelerators, advanced packaging, and server chips—pulling out of lower-margin verticals like auto.
techovedas.com/intels-18a-vs-tsmcs-n2-next-generation-process-nodes
Leadership Changes and Role Cuts
Senior leadership is also affected. Intel is letting go of:
- VPs in IT and Business Strategy
- Senior Engineering Managers
- Foundry Business Heads
These changes signal a cultural shift inside Intel—from sprawling legacy projects to a sharp focus on execution and agility.
Looking Ahead: Can Intel Regain Its Edge?
Intel is trying to reinvent itself, much like how a legacy carmaker pivots to electric vehicles by scrapping old factories and retooling for the future. The company’s success will depend on its ability to execute in:
- AI compute
- High-end server chips
- Foundry services for third-party clients
- Competing with TSMC and Samsung in advanced nodes
With this July restructure, Intel is making a high-stakes bet: that cutting back now will power stronger growth later.
Conclusion
Intel’s July 2025 restructuring is a painful but strategic pivot. By winding down its automotive ambitions and slashing thousands of roles,
Intel aims to sharpen its focus on what matters most—core chips, cloud, and AI. Whether this reset leads to a comeback or further decline remains to be seen.
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