Intel Layoffs, 21k Employees, Plans to Cut 20%

Main Takeaways from the Intel Layoffs Report

• Intel is laying off 110 employees in Austin, Texas as part of broader global workforce reductions.
• This is part of a larger plan to cut up to 20% of its workforce, potentially impacting over 21,000 employees worldwide.
• Layoffs have also occurred at other sites including:
  • 529 employees in Oregon
  • 107 in Santa Clara, California
  • 172 in Chandler, Arizona
  • 200 in Israel

Intel is responding to a $19 billion loss in 2024, its worst performance on record.

Intel’s $19 billion loss in 2024 was a seismic moment for the company—its worst annual performance ever. Here’s what drove it and how they’re responding.

What Caused the $19B Loss?

• Declining sales across key segments, especially in AI chips and client computing.
• Missed opportunities in emerging markets like automotive and edge computing.
• Intense competition from NVIDIA, AMD, and TSMC, who outpaced Intel with more advanced and cost-effective chips.
• Manufacturing inefficiencies and delays in rolling out next-gen process nodes like Intel 18A.

How Is Intel Adapting to AI Chip Making?

• Leadership changed in March 2025: Lip-Bu Tan replaced Pat Gelsinger as CEO.
• The company aims to become “leaner, faster, and more efficient” by reducing organizational complexity and enhancing manufacturing operations.
• The Austin layoffs follow previous cuts in 2024, including 251 positions eliminated last October.

See Also:

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