Intel is set to begin laying off factory workers at its Silicon Forest campus in Oregon starting mid-July, marking the company’s first major workforce reduction since Lip-Bu Tan took over as CEO in March. According to Oregon Live, employees were notified this week as part of a broader restructuring within the Intel Foundry manufacturing group. The company also warned that additional layoffs may follow if required.
Meanwhile, Intel has not disclosed the exact number of affected employees, it stated that these measures are necessary to improve its financial position.
The move comes amid increasing pressure on Intel to address ongoing challenges such as declining demand in the PC and laptop markets, falling revenue, and stiff competition in the chip manufacturing sector—especially in artificial intelligence (AI). Notably, the rivals like Nvidia and AMD have made significant gains in AI hardware, an area where Intel continues to lag.
In a statement to Tom’s Hardware, Intel said: “As we announced earlier this year, we are taking steps to become a leaner, faster, and more efficient company. Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We are making these decisions based on careful consideration of what is needed to position our business for the future, and we will treat people with care and respect as we complete this important work.”
In 2023, under former CEO Pat Gelsinger, Intel cut around 15,000 jobs globally, including about 3,000 in Oregon. Despite the layoffs, Intel remains the state’s largest private employer, with around 20,000 employees based in Washington County.
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