Big news from Intel: the tech giant is planning to lay off 15% to 20% of its factory workforce starting mid-July 2025. This comes from an internal memo recently shared with OregonLive. The first round of cuts is expected to wrap up by the end of July—though the company hinted that more layoffs might follow depending on how things go.

Why is this happening?

Intel says the move is part of a major shake-up in its Foundry manufacturing division. They’re aiming to build a more efficient, engineering-driven team, which means cutting down on management layers and support roles that aren’t directly tied to core chip-making.

In a message to employees, the company admitted it’s making “tough decisions” to stay affordable and reduce organizational complexity.

Oregon likely hit hardest

If you’re in Oregon’s “Silicon Forest,” this might sting a little more. That area is home to Intel’s key chip-making plants like D1X and D1D, and a large chunk of the workforce there is made up of factory techs and operators—exactly the roles expected to be affected.

A broader trend

Intel’s workforce was already trimmed down to around 109,000 people by late 2024, following earlier rounds of job cuts. These new layoffs are part of an ongoing plan to cut costs, boost efficiency, and respond to a cooling market and increasing competition.

The company’s new CEO, Lip-Bu Tan, who stepped in this March, seems to be moving fast to reshape the company’s future.

What’s next?

Intel says it wants to handle the layoffs “with care and respect,” but there are concerns—especially about how losing experienced fab workers might impact their already complex production lines.

Still, this marks a big shift in how Intel plans to move forward—focusing more on engineering horsepower than raw factory size.

Malaysia is unaffected

The upcoming layoffs target Intel's fab workers—technicians, operators, engineering staff involved in semiconductor fabrication—with the first wave starting mid?July and expected to wrap up by month’s end

Intel Malaysia operates assembly and test facilities across Kulim and Penang (sites such as KMDSDP, KMO, KM5, PG8) and isn’t part of the Foundry/fab manufacturing group in Oregon or Arizona

What are your thoughts on this news? Comment below, and stay tuned for more news like this at TechNave.