June 20, 2025 | Santa Clara, California

In a major shakeup for the global tech industry, Intel Corporation is preparing to lay off more than 10,000 employees worldwide, starting in July 2025, as part of a sweeping restructuring effort under newly appointed CEO Lip-Bu Tan. This round of cuts—impacting between 15% and 20% of the company’s Intel Foundry workforce—marks the third significant layoff in just over a year and is aimed at reversing ongoing financial struggles and realigning the company’s market focus.

The layoffs, expected to hit thousands of engineers, technicians, and support roles across Intel’s global footprint, raise significant concerns not only for impacted employees but also for the broader semiconductor ecosystem—including Non-Resident Indians (NRIs) employed at Intel offices worldwide.

Intel’s Third Major Layoff in a Single Year

This latest workforce reduction, expected to affect 8,170 to 10,890 employees, follows two previous waves:

• August 2024: Intel laid off 15,000 employees.
• Early 2025: Another round cut over 20% of the workforce (~21,800 jobs).

Intel’s global headcount shrank from 124,800 in 2023 to 108,900 by the end of 2024, indicating a persistent contraction trend driven by mounting losses.

An internal memo from Naga Chandrasekaran, VP of Manufacturing, emphasized the necessity of the move, citing “affordability challenges and the current financial position of the company.” Unlike previous rounds, this layoff cycle does not include voluntary exit packages or early retirements—making it significantly more abrupt for affected workers.

Why Is Intel Cutting Jobs?

Several intersecting challenges have led to Intel’s drastic decision:

• Mounting Financial Losses: Intel posted an $821 million loss in Q1 2025, following a historic $18.8 billion loss in 2024—its first annual loss since 1986.
• AI Market Misses: The underperformance of Intel’s Gaudi 3 AI chips and production issues with its 18A process resulted in lost business from clients like Broadcom.
• Tech Lag: Intel’s late adoption of 7nm technology allowed rivals like TSMC, NVIDIA, and AMD to outpace it in innovation and market share.
• New Strategic Vision: Since becoming CEO in March 2025, Lip-Bu Tan has focused on trimming costs, streamlining leadership layers, and re-centering the company on engineering excellence.
• Global Trade Pressures: Retaliatory tariffs from China and fears of trade disruptions have further impacted Intel’s already complex global supply chain.

Who Will Be Affected—and Where

The layoffs will primarily impact Intel’s foundry division, hitting roles in fabrication plants, R&D labs, and chip engineering teams. Facilities expected to be heavily affected include:

• Oregon’s Silicon Forest (20,000 employees)
• Campuses in Arizona, California, and Texas
• Overseas units in Israel, Poland, and India

India, home to critical R&D and back-office operations, may also see spillover effects. According to online posts, including those on X and Reddit, Indian engineers—both domestic and abroad—have voiced growing concerns over job security and Intel’s lack of severance packages in this round.

Strategic Shifts Under CEO Lip-Bu Tan

Tan’s vision for Intel is centered on bold transformation to restore its global standing. Key focus areas include:

• Aggressive Cost Cutting: Targeting a reduction in operating expenses from $18.5 billion in 2024 to $16 billion by 2026. Intel has also suspended stock dividends to redirect funds into innovation.
• Asset Divestment: The company has offloaded a 51% stake in Altera to Silver Lake for $4.46 billion and spun off Intel Capital, its venture wing.
• Flattening Bureaucracy: Management layers are being slashed to foster a faster, engineering-led culture—with emphasis on areas like EUV lithography and advanced node design.
• IDM 2.0 Strategy: While the Ohio mega-fab has been delayed until 2030, Intel remains committed to reshoring chip production and forging strategic alliances—including a rumored joint venture with TSMC.

However, industry watchers warn of possible production slowdowns and operational inefficiencies in the short term. A recent Tom’s Hardware report cited concerns about “reduced agility in chip rollout timelines.”

What It Means for the Tech Industry and NRIs

Intel’s layoffs are part of a broader tech-sector correction, with giants like Microsoft, Google, and Unity also cutting jobs in 2024–25 amid shifting economic models and AI integration.

For NRIs in tech, particularly in the U.S. and India, this development signals a heightened need for reskilling in AI, cloud, chip design, and system architecture. It also reignites debate on employee rights and corporate responsibility:

• Some commentators on X have criticized Intel’s lack of severance as “brutal,” especially when compared to companies offering exit options or reskilling assistance.
• Others believe the move is long overdue to fix Intel’s “multi-year financial and technological rut.”

Conclusion

Intel’s decision to lay off over 10,000 employees in July 2025 marks a defining moment for the semiconductor giant. Faced with steep financial losses, missed opportunities in AI, and intense competition, Intel is betting big on structural reform and lean operations under CEO Lip-Bu Tan.

For thousands of employees—including NRIs—and the tech sector at large, this wave of layoffs underscores the volatile nature of the industry and the urgent need to stay ahead of technological shifts.

As the company recalibrates, its ability to retain top talent, innovate in AI, and rebuild trust will determine whether this painful phase becomes a stepping stone toward revival—or further decline.

Stay tuned to NRI Globe for continued coverage on tech industry trends, semiconductor sector shake-ups, and opportunities for the Indian diaspora.