Santa Clara, June 21: Intel is expected to cut 15-20% jobs in July 2025, affecting multiple divisions. Majorly it will affect Intel's Foundry division responsible for in-house chip production. According to reports, Intel layoffs in July will affect around 10,000 employees. Moreover, the reports said the laid-off employees would not receive any severance pay. The US-based chipmaker will cut jobs amid financial challenges as part of its overall strategy to save costs.

Intel reportedly intends to save USD 10 billion in expenses by laying off employees from the company. Earlier, it was expected that the Intel layoffs round would affect around 20,000 individuals from its global workforce. However, as per a report by Times of India, the layoffs will impact over 10,000 people globally. It would represent around one-fifth of the manufacturing division's workforce. Amazon CEO Andy Jassy Anticipates Generative AI Will Reduce Its Corporate Workforce, Says ‘We Will Need Fewer People Doing Some of the Jobs That Are Being Done Today’.

Times of India said that, unlike previous Intel layoffs, this time, the tech giant may not offer early retirement packages or voluntary buyouts. The upcoming round of job cuts would reportedly be based on the performance evaluation and the company's strategic investment priorities across its manufacturing operations globally.

Intel VP Naga Chandrasekaran already stated in a memo that layoffs were difficult for the company. He said the reductions will be based on the combination of portfolio change, levels and position elimination. Chandrasekaran further said, "We are also considering factory operations impact". 

Intel CEO Lip-Bu Tan, after taking over the company's operations, revealed the plans to reduce more than 20% of the total workforce of the company. The move aimed to eliminate bureaucracy and rebuild the engineering-based culture at Intel. In the April memo, he stated, "I'm a big believer in the philosophy that the best leaders get the most done with the fewest people". Microsoft Layoffs Coming? Satya Nadella-Run Company May Lay Off Thousands of Employees in New Round of Job Cuts in Next Month Amid AI Push.

Times of India said that the layoffs would not affect key technical roles such as engineers involved in advanced process tech and the technicians working on critical lithography equipment.

(The above story first appeared on LatestLY on Jun 21, 2025 01:47 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).