Intel to Cut Factory Jobs in July as New CEO Launches Major Restructuring

Intel begins major factory layoffs in July under new CEO Lip-Bu Tan. Restructuring hits sites in Oregon, China, and Israel

Intel is preparing for a fresh round of layoffs targeting factory workers starting mid-July 2025. The move is part of a wider overhaul led by newly appointed CEO Lip-Bu Tan, who stepped in earlier this year.

This decision marks the company’s first major workforce shake-up under his leadership, signaling a clear shift in Intel’s direction.

Intel Foundry Takes the Biggest Hit

The focus of the layoffs will be Intel Foundry, the company’s internal chip-making arm. Oregon’s Silicon Forest campus, one of Intel’s biggest manufacturing hubs, will see the first wave of cuts.

Alongside Oregon, factory teams in China and Israel are also expected to be impacted. Internal sources reveal that some departments in China could lose up to 20% of their workforce. In Israel, Intel’s Kiryat Gat site may see reductions in middle management roles.

Departmental Discretion and Streamlining Operations

Intel has not confirmed the number of positions to be cut, but departments reportedly have the freedom to reduce headcount based on their cost targets. The goal is to simplify operations, reduce internal friction, and shift more focus toward engineering and technical expertise.

Mounting Industry Pressure and Recovery Efforts

This move comes as Intel continues to face pressure on several fronts. Demand for personal computers has slowed. Rivals like Nvidia and AMD are gaining ground in AI hardware. Revenue has been slipping. Intel, still recovering from a 15,000-job cut in 2023, now aims to become leaner and more efficient.

Company Statement Emphasizes Respect and Clarity

In a company statement, Intel said the changes are necessary to remove "organizational complexity" and sharpen its ability to serve customers. The leadership emphasized that all affected staff will be treated with “care and respect.”

A Broader Transformation on the Horizon

The restructuring strategy is part of Intel’s larger plan to restore investor confidence and reclaim its footing in a rapidly changing semiconductor landscape. The company hinted at a broader transformation to be revealed later this year, with a clear focus on AI, production upgrades, and long-term resilience.

Intel’s Position in Oregon and Global Uncertainty

Despite the murky skies of uncertainty, Intel remains Oregon's largest private employer with about 20,000 staff members employed after previous layoffs. But with the inevitable rounds of layoffs on the horizon, further questions start to pop: To what extent will the changes cascade down through Intel's global footprint?