Intel to lay off up to 20% of factory workforce
What's the story
Intel is preparing for a major workforce reduction, with plans to lay off up to 20% of its factory employees.
The move, which will mainly affect the company's internal manufacturing division, Intel Foundry, comes as part of a larger restructuring effort.
The layoffs are expected to begin in mid-July.
In an internal memo, Intel's manufacturing Vice President Naga Chandrasekaran said, "These are difficult actions but essential to meet our affordability challenges and current financial position of the company."
Business unit
Layoffs expected to be global in nature
Intel Foundry, the company's internal manufacturing division, will be at the center of these job cuts.
The layoffs won't just be limited to the US. Reports from Chinese media indicate that Intel China could lay off as much as 20% of its workforce, with some teams facing even bigger cuts.
The company's Kiryat Gat manufacturing site in Israel is also expected to be affected by these job cuts.
Past cuts
Intel laid off 15,000 employees last year
Last year, Intel laid off some 15,000 employees under former CEO Pat Gelsinger, including 3,000 in Oregon.
The latest round of job cuts comes as part of a broader strategic overhaul under new CEO Lip-Bu Tan's leadership.
Tan has been vocal about the need to simplify Intel's operations, flatten its management structure, and accelerate technology deployment. He also wants to retain and hire more top-tier engineers.