Intel Foundry to Cut Up to 20% of Workforce Amid Financial Struggles

Intel Foundry is preparing for a major round of layoffs, affecting up to 20% of its manufacturing staff. According to a leaked internal email confirmed by four employees, Intel is expected to begin the cuts this July. The email, sent by Naga Chandrasekaran, Vice President of Manufacturing, described the decision as painful but necessary due to financial constraints and accessibility issues.

Intel had approximately 109,000 employees as of December 2024, a decrease from around 124,800 the previous year. While it’s unclear how many workers are directly tied to chip production, estimates suggest between 8,170 and 10,890 employees could be affected. This follows last year’s layoffs, which resulted in the cut of 15,000 jobs, some of which were achieved through early retirement offers. This time, no such offers will be made.

Focus on Efficiency and Investment Priorities

Intel states that the layoffs will be based on investment priorities, role eliminations, and individual performance. The company emphasized the need to simplify operations and empower engineers to better meet customer needs. Roles will be cut based on portfolio changes, skill assessments, and the impact on factory performance.

Despite refusing to comment directly on the leaked memo, Intel stated it would treat employees with "care and respect" during the transition. The company operates 15 factories across 10 locations worldwide, with about half its workforce involved in manufacturing or related services. Other departments (R&D, design, and sales) are also expected to see similar job cuts later this year.