News Summary
Intel Corp. is laying off 172 employees at its Chandler campus as part of a major organizational restructuring following a reported loss of $821 million. This decision aligns with a broader strategy that may lead to the loss of up to 15,000 jobs nationwide. Despite a revenue of $12.7 billion, the company faces pressure to streamline operations amid manufacturing delays and fierce competition in the semiconductor industry. Intel is also planning substantial investments in new chip fabrication plants, which could create 3,000 jobs.
Chandler, Arizona – Intel Corp. is set to lay off 172 employees at its Chandler campus as part of a significant organizational overhaul. This decision was announced through a regulatory filing, highlighting the company’s aim to restructure its workforce amid serious financial losses.
The layoffs come on the heels of a reported loss of $821 million for the quarter ending March 31, marking a stark increase from a loss of $437 million during the same period the previous year in 2024. Despite recording revenues of approximately $12.7 billion in the same quarter, the company faces mounting pressures to streamline its operations. In total, Intel suffered an $18.8 billion loss last year, indicative of deeper issues affecting its performance.
Intel’s employee base stands at approximately 109,000, including around 12,000 employees at the Chandler location. As part of a broader strategy, media reports suggest that Intel may cut thousands of jobs nationwide, which aligns with earlier announcements about the potential layoff of 15% of its workforce, translating to roughly 15,000 jobs.
According to Intel spokesperson, Eleonora Akopyan, these layoffs aim to make the company “leaner, faster, and more efficient.” The move is seen as a necessary response as the company grapples with various challenges including manufacturing delays, issues with product quality, and fierce competition in the semiconductor industry.
Intel has notably struggled to keep pace with the rapid advancements in mobile technology and artificial intelligence (AI) powered chips, which have increasingly dominated the tech landscape. Last year, the company conducted a previous round of layoffs, cutting 385 jobs at its Ocotillo campus in Chandler as it sought to address its staffing and operational challenges.
In response to these hurdles, Intel is also committing to investing $20 billion in new chip fabrication plants in Chandler, which is expected to create 3,000 jobs in the region. Additionally, the company has received nearly $8 billion in direct funding from the U.S. Department of Commerce to boost its semiconductor manufacturing initiatives.
Leadership at Intel has also changed in recent times. Longtime CEO Pat Gelsinger was removed from his position late last year, and Lip-Bu Tan has taken over as the new CEO. Tan has emphasized the urgent need to revamp Intel’s corporate culture and enhance operational efficiency. Further reflecting its strategy to streamline, the company plans to reduce or exit around two-thirds of its real estate holdings worldwide by year-end.
Intel is slated to announce its second-quarter earnings on July 24, which could provide additional insights into the company’s financial trajectory and its plans for recovery amidst an evolving and competitive industry landscape.
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