Intel To Cut 2,400 More Jobs, Total Layoffs To Hit 4,000 By Mid-July; Here's What We Know So Far

In an ongoing restructuring effort, Intel announced on Friday evening that it will eliminate close to 2,400 jobs in Oregon, nearly five times more than what the company had initially disclosed earlier this week. The layoffs mark one of the largest workforce reductions in the state's tech history and signal a dramatic shift within Oregon’s once-booming semiconductor sector.

According to a Financial Express report, Intel’s latest move is part of a broader corporate overhaul led by newly appointed CEO Lip-Bu Tan. Nationwide, the company has confirmed plans to lay off nearly 4,000 employees across key tech hubs, including California, Arizona, and Texas. But Oregon — home to Intel’s largest and most advanced operations — is bearing the brunt. More than 1,500 jobs are being eliminated at Intel’s Ronler Acres campus in Hillsboro, long considered the centerpiece of its US manufacturing footprint.

The layoffs represent a critical juncture for the state’s economy. Semiconductor positions in Oregon average around $180,000 annually, well above the median wage. The expected reduction in consumer spending and state tax revenue has raised concerns among local officials and economists. The company’s ongoing eligibility for roughly $260 million in annual tax breaks may also come under renewed scrutiny, particularly if planned expansions are delayed or canceled.

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Intel Grapples With Market Realities And AI Setbacks

Intel’s struggles are not new. Once a dominant player in global chipmaking, the company has lost ground in recent years to competitors like TSMC and Nvidia. CEO Tan acknowledged the shift in internal communications, stating, “Twenty, 30 years ago, we were really the leader. Now… we are not in the top 10 semiconductor companies.”

Its late entry into the AI chip race has also exposed significant strategic missteps. While Nvidia leads the market for AI training chips, Intel is now attempting to reposition itself in adjacent AI technologies. The company is also exiting the automotive chip segment and outsourcing parts of its marketing to consulting firm Accenture.

As part of its realignment, Intel plans to cut 20 per cent of jobs in its Foundry Services division, which handles chip manufacturing and R&D. Laid-off employees will receive 13 weeks of base pay, additional compensation based on tenure, and a year of health coverage.

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