Intel Reportedly Planning Significant Layoffs in Foundry Division

Intel is reportedly preparing for substantial layoffs within its Intel Foundry division. According to sources familiar with the matter, the company is planning to reduce its workforce by as much as 20% in certain areas of the foundry business. This move signals a significant restructuring as Intel aims to streamline operations and enhance its competitiveness in the global semiconductor manufacturing landscape.

The layoffs are expected to impact various roles within the Intel Foundry organization, potentially affecting engineers, technicians, and support staff. While the exact number of employees affected remains undisclosed, the cuts are anticipated to be widespread and implemented in phases over the coming months. This decision comes as Intel intensifies its efforts to regain market share and secure key partnerships in the competitive foundry market.

Intel’s Foundry ambitions are no secret. The company has invested heavily in expanding its manufacturing capabilities and attracting external clients. The foundry business is crucial to Intel’s long-term strategy, aiming to manufacture chips not only for its own products but also for other companies, directly competing with industry leaders like TSMC and Samsung. These reported layoffs suggest a recalibration of strategy and a renewed focus on efficiency.

Several factors may be contributing to this restructuring. Increased competition, evolving market demands, and the need to optimize operational costs are likely playing a role. The semiconductor industry is known for its cyclical nature and high capital expenditure, requiring companies to adapt quickly to changing market conditions. Intel’s move could be seen as a necessary step to ensure the long-term sustainability and competitiveness of its foundry business.

The impact of these layoffs on Intel’s overall operations and its foundry clients remains to be seen. The company will need to carefully manage the transition to minimize disruptions and maintain the quality of its services. Moreover, Intel’s ability to attract and retain top talent will be crucial as it navigates this period of change. The coming months will be critical in determining the success of Intel’s foundry strategy and its ability to establish itself as a major player in the semiconductor manufacturing industry.

The changes arrive as Intel is trying to win back market share lost to competitors like Taiwan Semiconductor Manufacturing and Samsung Electronics in chip manufacturing. The company has invested billions of dollars in building new fabrication plants and upgrading existing ones in the US and Europe.

This news follows previous cost-cutting measures, including salary cuts for some executives and a broader effort to reduce operating expenses across the company. Intel’s CEO, Pat Gelsinger, has emphasized the importance of efficiency and profitability as the company undergoes a significant transformation.

This news arrives a couple weeks after an Intel spokesperson confirmed that the company would delay the opening of its Ohio manufacturing plant until late 2026.