Intel layoffs 2025: Chipmaker to shut automotive division, lay off most employees in the unit
Intel explained the reasoning behind the decision. “As we’ve said previously, we are refocusing on our core client and data center products to better serve our customers."
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Chip giant Intel is shutting down its automotive division and laying off most of the employees in that segment, according to an internal company message reviewed by The Oregonian/OregonLive. The move is the latest in a series of cost-cutting measures designed to refocus Intel on its core business areas and streamline operations.
“Intel plans to wind down the Intel architecture automotive business,” the company said in its internal communication to employees. While Intel said it would honor its existing commitments to customers in the automotive space, the message made clear that it would lay off “most” of the workers currently in that division.
In a written statement to The Oregonian/OregonLive, Intel explained the reasoning behind the decision. “As we’ve said previously, we are refocusing on our core client and data center products to better serve our customers. As part of this work, we have decided to close the automotive business within our client computing group. We are working to ensure a smooth transition for our customers,” the company said.
Intel’s automotive unit has not been one of its major divisions, and the company does not separately disclose its revenue or employee count. However, Intel claims its chips are used in around 50 million vehicles globally, helping power electric cars, deliver driver information, and optimize overall vehicle performance.
Importantly, this closure will not impact Mobileye, the Israeli self-driving technology company in which Intel holds a majority stake. Mobileye will continue to operate independently. Mobileye has been one of Intel’s high-profile automotive bets, providing advanced driver-assistance systems (ADAS) to automakers worldwide.
The decision to shut down the internal automotive unit comes amid broader restructuring under Intel’s new CEO, Lip-Bu Tan. Facing declining sales and a challenging revenue outlook, Tan has warned Intel employees to expect “several months” of layoffs and restructuring.
The automotive unit’s closure is just one of several major cuts underway: Earlier this month, Intel informed staff in its manufacturing unit that up to 20% of jobs in that unit could be cut starting in July.
Last week, marketing employees were told that Intel would outsource its marketing operations to consulting giant Accenture, a move that will also result in additional layoffs.
These sweeping changes underscore Intel’s strategy to become a leaner, more efficient company, better positioned to compete in its core markets of PC processors and data center chips. But they also mean significant uncertainty for Intel’s global workforce, with many employees waiting to see how deep the cuts will ultimately go.
Intel’s broader restructuring efforts reflect the company’s struggle to regain its leadership in semiconductor manufacturing amid fierce competition from rivals such as AMD, NVIDIA, and Taiwan’s TSMC. While the company is investing heavily in advanced manufacturing capacity and foundry services, cost-cutting has become an unavoidable part of its turnaround strategy.
