Intel Plans Up to 20% Manufacturing Workforce Layoffs July

Intel is set to lay off 15% to 20% of its factory workforce starting in July as part of a broader effort to streamline operations and reduce costs under new CEO Lip-Bu Tan. This move follows previous layoffs, including 15,000 job cuts in 2024, reflecting ongoing financial challenges and the need to reorganize Intel's business focus towards engineering and core units. The company aims to remove organizational complexity and empower engineers to better meet customer needs, though the exact impact on productivity and ongoing projects, especially in Intel Foundry, remains uncertain. Intel is also considering major cuts beyond the manufacturing division, with potential restructuring including spinning off noncore units and possibly splitting its foundry division. These layoffs come amidst pressure from competitors like Nvidia and interest from investors and other companies regarding Intel's strategic direction. President Donald Trump has shown interest in the situation, noting that Taiwanese contract manufacturer TSMC might consider gaining control over some operations.