Intel to Cut 15%-20% Workforce, Shut Automotive Unit, and Focus on 14A Chip Process Under CEO Lip-Bu Tan

Intel Corp is planning substantial workforce reductions and strategic shifts as part of a broader restructuring effort. Beginning in July 2025, the company will lay off between 15% and 20% of its global factory workforce, equating to over 10,000 employees, primarily within its Intel Foundry division. This move aims to reduce costs but raises concerns about operational agility and potential impacts on federal and state funding. Concurrently, Intel is shutting down its automotive chipmaking business, laying off most employees in that unit to refocus on its core client and data center operations.

Additionally, Intel's new CEO, Lip-Bu Tan, is considering a major change in the company's chip manufacturing strategy. He is exploring the possibility of discontinuing the marketing of the 18A manufacturing process to external customers due to weak demand and instead concentrating on the next-generation 14A process. This strategic pivot could involve writing off investments in the 18A and 18A-P processes, potentially costing Intel hundreds of millions of dollars, and represents a significant departure from the plans of former CEO Pat Gelsinger. The board is expected to discuss these options further within the month.