Intel Announces Layoffs of 15% to 20% of Factory Workforce Amid Financial Challenges

American company Intel is set to reduce its factory workforce by 15% to 20%. As of the end of 2024, the company employed 109,000 people, although the exact number working in the Intel Foundry lithography division is unknown.

These layoffs are driven by the company’s current financial situation and are necessary to address issues related to accessibility, according to Intel’s Vice President of Manufacturing, Naga Chandrasekaran. He noted that most of the job cuts are expected to take place in July of this year.

Chandrasekaran emphasized that simplifying organizational complexities and empowering engineers will enhance their ability to meet customer needs and expedite project execution.

Throughout 2023-2024, Intel has already let go of at least 23,000 employees, with 16,000 of those layoffs occurring last year. In April of this year, reports indicated that Intel was preparing to reduce its workforce by another 20%, which would affect around 21,000 employees.

Intel’s lithography sector encompasses a wide range of professionals, from factory technicians to researchers developing innovative solutions. The company is also planning significant reductions in other departments, with over 10,000 employees expected to be affected in total.

The layoffs will commence across the company’s global facilities, but the impact will be particularly severe on its Oregon workforce. The chip manufacturer employs around 20,000 people in the state, more than any other company. Last year, Intel cut 3,000 jobs in Oregon alone.