Intel to Cut 20% of Foundry Staff, Impact May Top 10,000

According to reports, Intel is set to carry out a significant workforce reduction within its manufacturing division, planning to lay off 15% to 20% of its factory employees, according to internal communications confirmed by multiple staff members.

In a memo sent to employees on Saturday, Naga Chandrasekaran, Intel's Vice President of Manufacturing, acknowledged the difficulty of the decision, stating that the cuts are “critical to address cost structure challenges and the company's current financial outlook.” Most of the job reductions are expected to take place in July.

While Intel declined to comment directly on the memo, it reaffirmed its commitment to treating employees “with care and respect” during the transition.

This announcement follows an earlier April disclosure that layoffs were on the horizon. Last week, affected factory personnel were formally notified that reductions would begin next month.

Intel currently employs approximately 109,000 people globally. While the exact number of factory workers isn't specified, estimates suggest around half of the workforce is involved in fab operations—implying potential layoffs of 8,000 to nearly 11,000 employees worldwide.

The manufacturing division includes a wide range of roles, from fab floor technicians to advanced R&D engineers developing next-generation microprocessors. These job cuts are part of broader restructuring efforts that may also affect other areas of the business, although specifics on additional divisions have yet to be disclosed.

Last year, Intel reduced its workforce by 15,000, including 3,000 in Oregon. The company continues to navigate a difficult market environment, marked by shrinking PC and data center demand, along with mounting pressure to compete in the fast-growing AI chip sector.

Unlike previous workforce reductions that offered voluntary buyouts and early retirement options, this round of layoffs will be determined by project priorities and individual performance metrics.

Despite the internal turbulence, Intel’s stock rose 3% on Monday, reaching $20.74. Over the past year, the stock has fluctuated between $17.67 and $37.16.