Intel To Slash 4,000 Jobs in July: Here’s What Laid-Off Employees Will Get

In a significant move, major chip-making giant Intel has announced a new round of layoffs, affecting 4,000 employees across the United States. Of these, 2,400 jobs will be cut at the company's Oregon facility alone, marking one of the largest tech layoffs in the state's history.

Employees in California, Arizona, and Texas will also be impacted, with the job cuts expected to take effect in mid-July.

The layoffs are part of new CEO Lip-Bu Tan’s global restructuring strategy aimed at reviving the company’s declining position in the semiconductor industry.

“Twenty, thirty years ago, we were really the leader. Now... we are not even in the top 10 semiconductor companies,” Tan reportedly told employees earlier this week, underlining the urgent need for transformation.

Once a dominant force in the global chip market, Intel has seen a sharp decline in recent years, losing ground to competitors like TSMC (Taiwan Semiconductor Manufacturing Company), which now supplies advanced chips to tech giants such as Apple and Nvidia.

Intel has also struggled to make an impact in the AI chip market, a sector now led by Nvidia. Tan is said to have acknowledged that Intel is “too late” to lead in AI training chips and must instead pivot toward adjacent technologies such as AI inference and edge computing.

As part of its restructuring plans, Intel exited from automotive chips, outsourced marketing to Accenture, and implemented a 20% cut in Foundry Division jobs.

Severance Package

To mitigate the impact of the layoffs, Intel is offering a severance package that includes:

13 weeks of base pay Additional compensation based on tenure One year of healthcare coverage

The restructuring is part of a broader effort to regain Intel’s competitive edge in a rapidly evolving tech landscape.