In the latest round of layoffs, chipmaker Intel has started fresh job cuts with 107 employees connected to its headquarters in Santa Clara, California, according to a CRN report. The layoffs are part of a broader restructuring plan to turnaround the beleaguered company.
According to the report, Intel has informed this to the stated of California through a notice, which is required under the California鈥檚 Worker Adjustment and Retraining Notification (WARN) in case of a layoff impacting 50 or more than employees in a 30-day period.
In the notice, the company said the layoffs are expected to begin July 15.
In the WARN notice, Intel said employees have either received a 60-day notice ahead of their separation or a four-week notice that comes with nine weeks of pay and benefits 鈥渋n lieu of further notice鈥, as per CRN.
Last week, reports citing CEO Lip-Bu Tan鈥榮 internal memo suggested that Intel was planning to lay off 15%-20% workers from its chip manufacturing division.
What Intel Spokesperson Says On Layoffs
In the latest statement, an Intel spokesperson, as reported by CRN, said, 鈥淎s 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.鈥
鈥淲e are making these decisions based on careful consideration of what鈥檚 needed to position our business for the future, and we will treat people with care and respect as we complete this important work,鈥 the spokesperson added.
CEO Lip-Bu Tan鈥檚 Turnaround Plans
Lip-Bu Tan, who assumed the role of Intel鈥檚 CEO in March, said in April that the company plans to cut operating expenses by $500 million this year and another $1 billion next year.
鈥淭here is no way around the fact that these critical changes will reduce the size of our workforce,鈥 he had said.
鈥淲e must balance our reductions with the need to retain and recruit key talent,鈥 he said in the memo. 鈥淚 will empower each of my leaders to make the best possible decisions aligned with our top priorities. These decisions will not be made lightly, and we will keep you regularly informed.鈥
Tan has been working on sweeping reforms at Intel, including a revamp of its artificial intelligence (AI) roadmap and chip manufacturing operations. A key element of his plan involves trimming layers of middle management, which he sees as an impediment to faster execution and innovation. In a recent company-wide town hall, Tan cautioned employees that 鈥渢ough decisions鈥 lay ahead.
Tan, 65, previously served as CEO of Cadence Design Systems and was a member of Intel鈥檚 board until August 2024. His appointment follows a challenging period for Intel, which reported a $19 billion annual loss in 2024 鈥 its first in nearly four decades 鈥 and continues to lose market share to rivals like Nvidia and Arm, especially in the AI chip sector.
Intel also announced mass layoffs in August last year.
The layoffs at Intel are part of a broader trend of cost-cutting and restructuring across the tech sector. According to data from layoffs.fyi, over 63,443 tech workers have already been laid off across 147 companies in 2025 so far.