Bad news for employees of this company as it heads for major layoffs, sacks 20 per cent workforce, closes core units in…, the company is…, not Infosys or TCS

Intel is cutting more jobs. A new notice says 107 employees linked to its main office in Santa Clara, California, will lose their jobs starting July 15. According to a CRN report, the company filed this notice under California’s WARN law, which requires advance warning when 50 or more workers are laid off within 30 days. In the WARN notice, Intel said employees have either received a 60-day notice ahead of their separation or a four-week notice that comes with nine weeks of pay and benefits “in lieu of further notice”, as per CRN.

Intel is also shutting down its automotive chip unit in Munich, Germany, and most people in that group will be let go. Earlier reports said the company might reduce staff by 15–20 percent in its chip-manufacturing division as part of a larger turnaround effort.

What Intel said about the layoffs

An Intel spokesperson, quoted by CRN, explained that the company is working to become “leaner, faster, and more efficient.” The goal, they said, is to cut down on unnecessary layers in the organisation and give engineers more control so they can better meet customer needs.

“These decisions are not easy,” the spokesperson added, “but they are being made after careful thought about what’s best for the future of the company. We’re committed to treating all employees with care and respect as we go through this process.”

CEO Lip-Bu Tan’s plans to fix intel

Intel’s new CEO, Lip-Bu Tan, who took charge in March 2025, is making big changes to turn the struggling company around. In April, he shared that Intel plans to cut USD 500 million in operating costs this year, and another USD 1 billion next year.

But these savings come at a cost. “There’s no avoiding the fact that these changes will reduce our workforce,” Tan said in a message to employees. He added that while jobs will be cut, the company will also focus on keeping and hiring the right talent to move forward. He said each leader at Intel will be trusted to make the best decisions based on the company’s top goals and promised to keep employees updated.

Tan’s plan includes a complete overhaul of Intel’s AI strategy and chip-making process. One major change is cutting down layers of middle management, which he believes slow down innovation and decision-making. At a recent town hall, he warned employees that more “tough decisions” are ahead.

Tan, 65, is no stranger to leadership. He was the CEO of Cadence Design Systems and served on Intel’s board until August 2024. He stepped in after Intel reported a USD 19 billion loss in 2024, its first annual loss in nearly 40 years. The company has also been losing ground to competitors like Nvidia and Arm, especially in the fast-growing AI chip market.

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