Layoffs: Intel to Launch Mid-July Job Cuts As Foundry Restructuring Begins: Report

Intel is reportedly preparing to downsize its workforce starting in mid-July, signalling the first major organisational shift under its new CEO, Lip-Bu Tan. The decision, shared internally with employees, reflects the company’s aim to become more agile and competitive amid ongoing challenges in the semiconductor sector.

A memo obtained by The Oregonian/OregonLive outlined the tech giant’s plan to carry out job cuts over the latter half of July, concluding by the month’s end, reported The Financial Express.

The move is tied to Intel’s effort to reshape its Foundry business—its internal manufacturing arm—into a “leaner and more responsive” unit.

While the internal communication did not provide specifics on the number of roles being eliminated or the locations affected, it indicated that department heads will have the flexibility to decide how to implement reductions in alignment with corporate financial goals.

Streamlining Operations to Boost Competitiveness

In a public statement, Intel emphasised the broader intent behind the cuts. “Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution,” the company said. It stressed that decisions were made only after “careful consideration” and promised to treat affected employees with “care and respect.”

This restructuring comes amid broader layoffs across the technology sector in 2025. According to the layoff tracking site Layoffs.fyi, more than 61,220 tech professionals have lost their jobs this year across 130 companies.

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Industry-Wide Reductions Continue

Microsoft initiated one of the year’s most significant job cuts on May 13, slashing 6,000 positions—or about 3 per cent of its global workforce of 228,000. Around 2,000 of those jobs were lost in its home state of Washington, affecting multiple departments.

Google, too, has trimmed its headcount, eliminating several hundred roles within its Platforms & Devices group in April. This included staff from key product areas such as Android, Pixel, and Chrome. The move followed earlier workforce reductions in its cloud division during February.

Amazon has also made staffing changes, cutting approximately 100 jobs from its Devices and Services team. The layoffs impacted units responsible for Alexa, Echo, Kindle, and Zoox, the company’s autonomous vehicle subsidiary.

As the competitive pressure on tech companies mounts, Intel’s upcoming changes reflect a broader industry trend of tightening structures, cost optimisation, and strategic reorientation.

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