Intel Axes CA Jobs, Closes Automotive Chip Unit

Intel Axes CA Jobs, Closes Automotive Chip Unit

In Summary

  • Intel lays off 107 employees in California, including key chip engineers
  • Automotive chip division shut down, with most unit staff losing jobs
  • CEO Tan calls for leaner teams focused on efficiency and impact
  • Intel aims to save $500 million in 2025 and $1 billion in 2026


Catenaa, Friday, July 04, 2025- Intel has begun layoffs of more than 100 employees in California, including chip design engineers and architects, as part of a broader restructuring effort announced by CEO Lip-Bu Tan.

The cuts are scheduled to start July 15 and follow Tan’s earlier warning that 15% to 20% of the company’s workforce would be reduced.

Among the affected are 22 physical design engineers, three physical design engineering managers, logic and product development engineers, cloud software architects, and technology strategy leads.

The layoffs comply with California’s WARN Act notification rules.

In addition to personnel cuts, Intel is exiting the automotive chip market by shutting down its automotive division, which operated within the Client Computing Group and was based in Munich, Germany.

This division focused on platforms for software-defined vehicles, working closely with European automakers. Most employees in the automotive unit are expected to lose their jobs.

Tan cited a need to reduce excessive management layers and improve operational efficiency. In an internal memo, he criticized previous leadership metrics focused on team size, emphasizing a new culture of doing more with fewer people and empowering top talent.

Intel is targeting $500 million in cost savings this year and an additional $1 billion in 2026. The company is also outsourcing much of its marketing operations to Accenture, which plans to use AI-driven communication tools.

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