Not Narayana Murthy's Infosys, TCS, Wipro, Microsoft, Google, this IT giant heads for new round of layoffs due to..., sacks 107 employees linked to...

Intel has announced a new round of job cuts, affecting at least 107 employees connected to its headquarters in Santa Clara, California. The layoffs are part of a larger plan to restructure the company and bring it back on track after recent financial struggles. The job cuts were officially confirmed through a WARN notice (Worker Adjustment and Retraining Notification) filed with the state of California. This law requires companies to notify the state if 50 or more employees will be laid off within a 30-day period. According to the notice, the layoffs will begin on July 15.

As per the CRN report, some employees received a 60-day notice, while others were given a four-week notice along with nine weeks of pay and benefits instead of a longer warning.

Alongside the layoffs in California, Intel is also closing down its automotive chip business based in Munich, Germany. A company memo stated that Intel plans to “wind down the Intel architecture automotive business” and most of the workers in that unit will be laid off.

This wave of layoffs comes shortly after reports that Intel is planning to reduce 15% to 20% of its workforce in its chip manufacturing division, according to an internal memo from CEO Lip-Bu Tan.

An Intel spokesperson said, “We are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity will help us serve customers better and improve execution.” They added that Intel is handling the layoffs with “care and respect.”

CEO Lip-Bu Tan, who joined Intel in March 2025, has introduced a turnaround strategy aimed at cutting operating expenses by $500 million this year and another $1 billion in 2026. He has also launched a reform of Intel’s AI roadmap and chip production process, focusing on faster decision-making and innovation by reducing layers of middle management.

Tan, a former CEO of Cadence Design Systems and past Intel board member, is trying to steer the company out of a difficult phase. Intel reported a $19 billion loss in 2024 — its first in nearly 40 years — and is losing ground to competitors like Nvidia and Arm in the AI chip market.