Intel Initiates 15% Job Cuts in Santa Clara

Intel Corporation, the semiconductor giant, has commenced significant layoffs at its headquarters in Santa Clara, California, as part of a larger, previously announced plan to reduce its global workforce by approximately 15%.

This strategic, multi-billion-dollar cost-cutting measure is designed to help the company navigate a challenging global chip market.

It also allows Intel to reinvest capital into its ambitious manufacturing and process roadmap, known as IDM 2.0.

The layoffs, confirmed through required WARN (Worker Adjustment and Retraining Notification) filings, indicate a broad restructuring effort.

This effort is impacting administrative, engineering, and support roles across key California offices.

The Scale of the Global Restructuring at Intel

The 15% reduction in global workforce represents one of the most substantial corporate overhauls in Intel’s recent history.

The company has not disclosed the exact global tally of affected employees. Nevertheless, the figure is estimated to be in the thousands.

The restructuring is a direct response to a combination of macroeconomic headwinds—including a slump in the personal computer (PC) market following the pandemic boom—and the need to fund the aggressive expansion of its foundry business and maintain technological competitiveness against rivals like TSMC and Samsung.

The workforce reduction is expected to generate several billion dollars in annualized savings by 2025.

Impact on Silicon Valley Headquarters

The job cuts in Santa Clara, which house Intel’s executive leadership and core development teams, underscore the seriousness of the situation.

These reductions confirm that no segment of the company is immune to the belt-tightening.

The specific roles targeted are often associated with older business units or functions deemed non-essential to the long-term IDM 2.0 strategy.

The IDM 2.0 strategy itself focuses heavily on process technology leadership and external foundry services.

Layoffs in Silicon Valley are particularly sensitive because they affect high-cost regions.

Furthermore, they signal a shift in resource allocation toward newer R&D hubs and advanced manufacturing sites globally.

Focus on IDM 2.0 and Future Investment

Intel CEO Pat Gelsinger has framed these job cuts as a painful but necessary step. The step is essential for achieving financial efficiency and securing Intel’s future dominance.

Intel will redirect the massive savings generated by the workforce reduction to fund capital-intensive projects.

These projects include constructing new fabrication plants (fabs) in Europe and the United States, and accelerating the development of next-generation process nodes (e.g., Intel 18A).

Ultimately, the reduction is part of a “smart spending” initiative aimed at streamlining operations and aligning the cost structure with the lower revenue projections typical of the current cyclical downturn in the technology sector.

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