Intel to lay off fab workers in mid-July — company aims to refocus on more engineering talent
The number of employees affected is unclear
Intel will start to lay off its fab personnel at its Silicon Forest campus in Oregon from the middle of July, the company wrote to its employees this week, according to Oregon Live. The first round will conclude by the end of that month, but the company may perform another round of layoffs if it deems necessary.
An internal message sent to employees at Intel's production facilities outlined that the company is restructuring its Intel Foundry manufacturing group to make it more focused on engineering and technical roles (i.e., cutting middle management). While no exact figures were provided, the communication acknowledged the seriousness of the decision and claimed it as a necessary step to improve the company's financial position.
"As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company," a statement by Intel sent to Tom's Hardware reads. "Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution. We are making these decisions based on careful consideration of what is needed to position our business for the future, and we will treat people with care and respect as we complete this important work."
As of December 28, 2024, Intel's workforce comprised 108,900 people, down around 15,000 eliminated under the previous chief executive Pat Gelsinger last year. Intel's Oregon facilities were not an exception and eliminated around 3,000 jobs, yet maintained a headcount of around 20,000.
Intel did not announce how many positions it plans to cut at Intel Foundry. However, people from other divisions indicated to Oregon Live that they expect similar reductions, though each unit would be allowed to manage the process independently as long as they meet specific cost-reduction targets.
Oregon is home to some of Intel's most advanced production facilities, including D1X and D1D fabs used to develop, test, and perfect the upcoming process technologies. Despite high levels of automation of modern semiconductor fabrication facilities, even advanced fabs like Intel's D1D and D1X in Oregon still rely on a diverse workforce that includes process and equipment engineers, technicians, operators, analysts, and a variety of support staff.
The most critical roles, such as engineers who develop and maintain cutting-edge process technologies, and high-skill technicians who manage complex equipment like EUV and High-NA EUV lithography systems, are essential to fab operations and unlikely to be affected by layoffs without risking delays in technology development or production uptime.
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However, Intel may reduce headcount among roles that have become more redundant due to automation or operational streamlining. These include fab operators, administrative staff, logistics personnel, and lower-skill technicians in highly automated areas.
On the one hand, by targeting non-core functions and consolidating support roles, Intel can cut costs while preserving the technical expertise needed to keep its most advanced manufacturing lines running. On the other hand, cutting lower-skilled personnel may reduce operational flexibility, slow response times during equipment issues, and increase workload for remaining employees. Keeping in mind that these fabs run 24/7, even small delays in maintenance or logistics can lead to costly downtime. Nonetheless, it looks like for Intel, desperate times call for desperate measures.
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Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.
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ThatMouse It sounds like a good idea until you work for a company where managers are too busy to even respond to your emails.Reply -
thestryker Unless it's really top heavy this seems like a really weird time to be making cuts at IFS period let alone at the primary research location. I suppose over time we'll see, but so far the moves have felt a lot more like minimum viable than actually moving forward with a leadership role.Reply -
Reverend_Clint Reply
Yeah when I was there you had to ask them nicely to do things otherwise you'd hear back about it.ThatMouse said:It sounds like a good idea until you work for a company where managers are too busy to even respond to your emails.
"Engineering Talent" lol the engineer in our lab got his degree at ITT Tech. -
Trake_17 Laying off fab workers is a curious move for a company still claiming to want to rival TSMCReply -
TerryLaze Reply
They just finished construction on the mayor FABs and are ready if not already started to ramp up production.thestryker said:this seems like a really weird time to be making cuts at IFS period let alone at the primary research location.
Would make sense to shift workforce when shifting workload. -
Loadedaxe Reply
While the CHIPS Act hasn't been fully canceled, its funding is being renegotiated, and some grants might get cut.rluker5 said:If only the CHIPS act weren't effectively cancelled.
One thing to remember, Trump said he was going to cancel it, that is one of the things the pushed for in his campaign. However, Republican lawmakers pushed back, arguing that the funding is critical for national security and that the money has already been allocated.
TSMC and Intel are both still benefitting from it. Intel has received $2.2B and TSMC $1.5B that isn't chump change.
I completely agree with everyone here, this is not the time for job cuts. These big corporations need to rethink how they utilize their workforce, playing to employees strengths rather than arbitrarily deciding who stays and who goes. -
Thunder64 Replyphead128 said:18A yields clearly are doing great. Unquestioned process leadership accomplished.
How about waiting until we see a product? -
Loadedaxe Reply
Nah, some people, simpletons, as some call them....just want Intel to fail no matter what, without even considering the consequences. They don’t seem to realize the ripple effect that would have on the industry and the economy.Thunder64 said:How about waiting until we see a product?