A recent report from The Oregonian reveals the latest move in Intel’s sweeping restructuring, signaling a sharpened focus on its core competencies.
In a significant strategic shift, Intel is winding down its in-house automotive chipmaking business, a move that will result in the layoff of most employees in that division. The decision is the latest and one of the most pointed actions taken by the company as it continues a broader restructuring effort aimed at cutting costs and refocusing its product portfolio.
According to an internal message viewed by The Oregonian/OregonLive, Intel “plans to wind down the Intel architecture automotive business” and will eliminate the majority of roles tied to the unit. While the exact number of affected employees from this specific division has not been disclosed, sources confirm the layoffs will impact staff who had been working on software-defined vehicle systems.
In a statement provided to The Oregonian/OregonLive, Intel explained the reasoning behind the closure: “As we’ve said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers. As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.”
It’s important to note that the shutdown of this division does not appear to affect Mobileye, the Israeli self-driving technology company in which Intel holds a majority stake. Mobileye is a separate entity with its own market presence and will continue to operate independently.
This closure is part of a series of bold, decisive moves Intel has made in recent months under new CEO Lip-Bu Tan. Since taking the helm, Tan has been clear about his intent to streamline the company and “remove organizational complexity” and “unnecessary bureaucracy.” This has translated into a series of difficult but strategic changes.
Earlier this month, it was reported that Intel would begin a new round of layoffs on July 15, with a WARN notice filed in California indicating that over 100 employees at its Santa Clara headquarters would be impacted. This follows a major workforce reduction in 2024, when the company laid off approximately 15,000 employees. Rumors from internal memos cited in reports suggest even more widespread cuts, with up to 20% of the manufacturing workforce potentially being affected.
In another restructuring move aimed at focusing on core business, Intel is reportedly outsourcing much of its marketing operations to Accenture, with a plan to leverage AI tools to manage customer communications more efficiently.
The closure of the automotive chip business—a segment where Intel’s chips are used in over 50 million vehicles—underscores the company’s commitment to prioritizing its core client and data center businesses in a highly competitive market. With these aggressive restructuring efforts, Intel is betting on a leaner, more focused strategy to regain its footing and drive future growth.
