Intel, one of the world’s leading semiconductor companies, is set to implement significant layoffs within its manufacturing workforce, targeting 15% to 20% of its factory workers globally.

According to a recent internal memo obtained by OregonLive, the layoffs are slated to begin in mid-July 2025 and will impact Intel’s factories worldwide, with a potentially outsized effect on its operations in Oregon, often referred to as the Silicon Forest. This move comes as part of a broader restructuring effort under the leadership of new CEO Lip-Bu Tan, who took the helm in March 2025.

The scale of these layoffs signals a critical pivot for Intel as it grapples with mounting financial pressures and a rapidly evolving competitive landscape in the chip industry. Oregon, home to some of Intel’s largest and most advanced manufacturing facilities, could bear a significant brunt of the cuts, given the state’s historical importance to the company’s production capabilities. OregonLive reports that while exact numbers remain undisclosed, the memo suggests a deep reduction in factory staff as Intel seeks to streamline operations.

Strategic Shift Under New Leadership

Intel’s decision to reduce its manufacturing workforce is not merely a cost-cutting measure but part of a larger strategic overhaul. Since Lip-Bu Tan’s appointment, the company has signaled intentions to refocus on innovation and engineering talent, potentially at the expense of traditional manufacturing roles. This aligns with broader industry trends where semiconductor giants are increasingly outsourcing production to foundry partners like TSMC while investing heavily in research and design.

The timing of these layoffs, just months after Tan’s arrival, underscores the urgency of Intel’s transformation. As reported by OregonLive, the company had previously hinted at significant job cuts in April 2025, though specifics on timing and scope were unclear until now. The mid-July timeline indicates a swift push to execute these plans, with the layoffs expected to conclude by the end of the month.

Impact on Oregon’s Silicon Forest

Oregon’s Silicon Forest, a hub for Intel’s manufacturing and research since the 1970s, employs thousands of workers across multiple campuses. The potential for substantial layoffs in this region raises concerns about local economic ripple effects, from reduced consumer spending to impacts on ancillary businesses that support Intel’s operations. Community leaders and workers alike are bracing for the fallout, as OregonLive notes the deep ties between Intel and the state’s tech ecosystem.

Beyond the immediate job losses, this move could signal a long-term shift in Intel’s commitment to domestic manufacturing. With global factories also facing cuts, the company appears to be reevaluating its production footprint at a time when geopolitical tensions and supply chain disruptions have made semiconductor manufacturing a national security priority in the U.S.

Looking Ahead: Challenges and Opportunities

Intel’s restructuring under Lip-Bu Tan is a high-stakes gamble. While shedding factory jobs may improve short-term financials, it risks alienating a skilled workforce and could hamper production capacity during a period of heightened global demand for chips. OregonLive highlights that Intel has yet to clarify how it will balance these cuts with its ambitious goals to reclaim market leadership from rivals like AMD and Nvidia.

As the mid-July layoffs approach, all eyes will be on Intel to see how it navigates this turbulent chapter. The company’s ability to pivot toward innovation while maintaining operational stability will be critical. For now, workers in Oregon and beyond face uncertainty, while industry watchers await further details on Intel’s long-term vision under its new CEO.