Jun 25, 2025, 12:00 AM
Jun 25, 2025, 12:00 AM

Intel shuts down automotive division, laying off most employees

Highlights
  • Intel plans to wind down its automotive business, affecting most employees in that sector.
  • The company will still honor commitments to its customers during this transition.
  • This restructuring aims to address financial challenges as Intel seeks to enhance its competitiveness.
Story

In the United States, Intel has moved forward with significant restructuring efforts within the company. The tech giant has announced the decision to shut down its automotive business, leading to layoffs that will primarily affect the majority of its workers within that segment. This announcement falls amidst a broader plan, as Intel aims to address ongoing financial challenges and falling sales forecasts. The layoffs reflect a continuation of a strategy that began with previous notifications regarding factory job reductions and a shift in outsourcing marketing efforts to external firms, which the company believes could yield more effective results. Despite being positioned in a critical technological cornerstone—with its processors being used in approximately 50 million vehicles—Intel's automotive sector has never constituted a major part of the company's business model. The decision to wind down operations does not, however, appear to threaten the entity's stake in Mobileye, the autonomous vehicle technology firm it owns. Intel has assured stakeholders that it will maintain commitments to existing customers even as it re-evaluates its resources and workforce amid a challenging economic landscape. This strategic shift by Intel aligns with the technology industry's trend of consolidating efforts and focusing on core strengths. The company has recognized that innovation is best supported by a streamlined workforce, which could lead to enhanced productivity despite the looming layoff percentages stated in previous announcements. Intel's aim is to emerge as a more competitive player in the semiconductor market, particularly against rivals like AMD and ARM Holdings, which have been increasingly capturing market share. The layoffs are set to occur predominantly in July as part of an ongoing review process facilitated by the new leadership under Chief Executive Officer Pat Gelsinger, who has outlined a challenging but necessary path for Intel’s recovery. This includes cuts across various departments, showcasing the significant changes underway at one of the world's largest chip manufacturers as it strives to adapt to current market demands and improve its financial health.

Opinions

You've reached the end