CALIFORNIA – Intel Corporation notified the California Employment Development Department (EDD) that it would be laying off 584 employees effective July 15.
The tech company, best known for manufacturing semiconductor chips, said it will eliminate up to 20% of its factory workforce worldwide.
Intel also announced it was laying off 110 employees in Texas, 2,392 in Oregon, 172 in Arizona and 200 in Israel.
The California layoffs were announced in a Worker Adjustment and Retraining Notification (WARN), a state requirement that gives employees advance notice of mass layoffs to allow time to adjust.
‘We are not in the top 10 semiconductor companies’
Intel CEO Lip-Bu Tan said 20 or 30 years ago, they ‘were the leader’ in semiconductor manufacturing. Now he thinks the world has changed.
“We are not in the top 10 semiconductor companies,” Tan said during a recent internal meeting with employees, according to a transcript obtained by OregonLive.
The layoffs are part of a major restructuring effort to reduce costs amid declining profits and rising competition.
In recent years, Intel has lost market share to competitors like Nvidia, AMD and TSMC.
Tan said the cuts are necessary to meet the company’s “affordability challenges” and current financial position.
Intel will focus on AI PCs
Intel plans to focus on AI-powered PCs – running AI directly on devices for real-time processing without relying on the cloud.
They also emphasized that agentic AI – where AI acts autonomously without constant human input, as a key growth area.
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