Intel cuts over 2,000 jobs as part of major layoff drive amid mounting industry pressure

Intel has laid off over 2,000 employees across three U.S. locations as part of a significant workforce reduction, marking the latest chapter in the tech giant’s ongoing struggle to regain market leadership. The job cuts, announced on October 17, are part of a broader restructuring plan aimed at slashing $10 billion in costs by 2025, as the company battles stiff competition from ARM-based processors and NVIDIA’s advances in AI technology.

The layoffs impact 1,300 employees in Oregon, 385 in Arizona, and 319 in California. Intel is also set to lay off an additional 251 workers in Austin, Texas, according to a Worker Adjustment and Retraining Notification (WARN) filing, which requires companies to give notice of mass layoffs.

Intel’s move comes amid a challenging year, with its stock plunging by nearly 60%. Once considered the gold standard in the chipmaking industry, Intel now finds itself struggling to keep up with evolving industry trends, particularly in AI and custom chipsets, where rivals like ARM and NVIDIA have made significant strides.

In response to these layoffs, Intel CEO Pat Gelsinger has emphasised the need to make tough decisions to steer the company towards recovery. “We are committed to taking decisive steps to position Intel for long-term success and to deliver sustainable value to our shareholders,” Gelsinger said. This effort, which began with job cuts earlier this year, forms part of Intel’s plan to reduce costs as it works to maintain relevance in the ever-evolving semiconductor landscape.

The layoffs have triggered a range of reactions, with many affected employees turning to social media to seek new job opportunities or voice concerns over the company’s handling of the situation. Some discussions have linked the job losses to broader political issues ahead of the U.S. presidential election, while others see it as a direct result of Intel’s internal struggles.

The layoffs signal Intel’s ongoing challenge to stay competitive in a tech world increasingly dominated by ARM’s energy-efficient processors and NVIDIA’s dominance in AI and graphics processing units. As Intel looks to the future, these job cuts mark another critical moment in the company’s ongoing transformation. With an aggressive cost-cutting strategy in place, Intel hopes to stabilise its position and make a comeback in a rapidly shifting tech landscape.