Intel is set to cut over 500 jobs in Oregon as part of a sweeping global restructuring plan that could ultimately impact up to 20% of its workforce. Beginning July 15, 529 roles will be eliminated at the company’s facilities in Aloha and Hillsboro, according to a regulatory filing cited by Bloomberg. This follows a previous layoff notice in California, where 107 employees at Intel’s Santa Clara headquarters were informed that their positions would be terminated this month. The layoffs are part of CEO Lip-Bu Tan’s broader cost-cutting strategy aimed at reshaping the company into a more agile and efficient operation.
The company confirmed that the Oregon layoffs are part of a larger effort to become “a leaner, faster and more efficient company.” Intel emphasized that it is “removing organisational complexity and empowering our engineers” in order to improve customer service and operational execution. A company spokesperson added that the decision followed “careful consideration of what’s needed to position our business for the future,” and assured that affected employees will be “treated with care and respect.”
Roles being cut include key engineering and leadership positions, such as physical design engineers, chip developers, cloud software specialists, and even senior leadership positions, including a vice president of IT. These cuts are expected to deeply affect Intel’s internal foundry unit, which handles chip production. According to an internal memo cited by The Oregonian, up to 20% of the manufacturing division could be laid off.
In addition to the U.S. reductions, Intel is also shutting down its automotive chip business based in Munich, Germany. This division, which focused on software-defined vehicles and was led by longtime executive Jack Weast, will be largely dissolved, with most employees losing their jobs.
Intel is offering displaced staff either a 60-day or four-week notice period, along with nine weeks of severance pay and continued benefits. The company also plans to outsource parts of its marketing operations to Accenture, with some tasks expected to be handled by AI.
These latest job cuts follow a difficult 2024 for Intel, during which the company laid off 15,000 workers. The restructuring comes amid a broader downturn in the tech sector, where over 62,000 jobs have been lost globally in 2025 alone, affecting major firms like Microsoft, Google, Amazon, and Meta.
