Intel just pulled the pin. Over 10,000 jobs are getting wiped from its Foundry division. No severance. No buyouts. No early retirements. Just a cold memo and a performance score. The layoffs hit 15 to 20% of the global Foundry workforce. That’s not a trim. That’s a structural teardown.
The cuts are scheduled to begin in July. They’ll hit 15 fabrication plants across 10 countries. Floor techs, R&D engineers, material handlers, project leads. No one’s safe unless they’re tied to critical lithography or advanced process nodes. The rest are being evaluated on “strategic alignment” and “skill fit.” That’s the new HR code for expendable.
Intel’s new CEO, Lip-Bu Tan, is behind the blade. He took over in March and made it clear. Fewer people. Fewer layers. More output. He’s already cut 35,000 jobs since August 2024. This round is the third in a year. But it’s the first with zero cushion. No packages. No soft landings. Just a pink slip and a locked badge.
Why no severance? Intel is classifying the cuts as performance-based or project-based. That legal framing lets them skip the payouts, especially in overseas fabs. It’s a cost-saving move. The company lost $821 million in Q1. The CHIPS Act funds are still frozen. Intel was expecting $7.9 billion in subsidies. That money is stuck in Washington.
The layoffs aren’t stopping at the fabs. Marketing is next. Intel is outsourcing entire departments to Accenture. AI is replacing the rest. Internal documents show that marketing headcount decisions will land by July 11. No severance confirmed there either.
Intel’s headcount has already dropped from 125,000 in 2023 to 109,000 at the end of 2024. After this round, it could fall below 95,000. The company is shrinking fast. And it’s not just about cost. It’s about control. Tan wants a leaner, flatter org. He wants engineers in charge. He wants bureaucracy gone.
But there’s a price. Intel is burning bridges with talent. No one wants to join a company that fires without a parachute. No one wants to build for a firm that treats layoffs like a spreadsheet formula. The Foundry cuts are a message. And the message is clear. You’re either essential or you’re gone.
Sources:
https://techstory.in/intel-to-lay-off-over-10000-employees-with-no-severance/
https://english.mathrubhumi.com/news/money/intel-layoff-foundry-workers-july-no-severance-mnl19qde