Intel has started laying off hundreds of employees at its Santa Clara headquarters in California as part of a broad cost-cutting and restructuring initiative introduced by CEO Lip-Bu Tan.

The company plans to reduce its workforce by 15% to 20%, targeting excessive management layers as well as critical engineering roles.

Chip Design Engineers and Architects Among Those Affected

Contrary to expectations, the layoffs include key technical staff such as chip design engineers, architects, and physical design engineering managers.

Approximately 22 physical design engineers and three engineering managers are losing their jobs, alongside logic and product development engineers who work on CPU and GPU products.

Closure of Intel’s Automotive Chip Division

Intel is shutting down its automotive chip business, which operated within the Client Computing Group and was based in Munich, Germany.

This move affects most employees in the automotive unit, including teams led by longtime Intel veteran Jack Weast.

The decision marks Intel’s shift away from automotive platforms to concentrate on core client and data center solutions.

Layoff Details and Employee Support Measures

A formal notification to the state indicates 107 layoffs at the Santa Clara site, complying with California’s WARN Act.

Affected employees will receive either a 60-day or a four-week notice, plus nine weeks of pay and benefits.

The job cuts are set to begin on July 15, impacting engineers, architects, cloud software staff, and several management roles.

CEO Tan’s Vision: Smaller, More Efficient Teams to Boost Execution

In internal communications, CEO Lip-Bu Tan criticized past leadership metrics tied to team size.

He emphasized that future success will be measured by impact and efficiency within smaller teams.

Tan stated, “I am a big believer in the philosophy that the best leaders get the most done with the fewest people”.

This philosophy guides Intel’s move to streamline operations and empower key talent.

PHOTO: INTEL

This article was created with AI assistance.