Intel reveals plans to lay off thousands of workers

Andy Jassy, the chief of Amazon, recently warned that technology, specifically artificial intelligence, will cost thousands of Americans their jobs in coming months and years.

Intel, the faltering legacy tech company, confirmed that.

It announced, in an email sent to employees, that it could lay off as many as one-fifth of its staff.

“These are difficult actions but essential to meet our affordability challenges and current financial position of the company,” explained Naga Chandrasekaran, an executive at the Oregon-based company.

His comments were confirmed in a report at Oregon Live.

Chandrasekaran said the company is expecting cut up to 20% of its factory workers.

Intel has reportedly told employees it plans to lay off 15 percent to 20 percent of workers from its chip manufacturing division, with job cuts expected in other divisions. https://t.co/xSp1oPaQFQ

— Semiconductor News by Dylan Martin (@DylanOnChips) June 17, 2025

A report at the Daily Mail noted the company has about 109,000 workers globally, so the cuts could mean up to 21,800 being laid off.

“It is not clear how many work in US-based factories, and how many American jobs will go,” the report said.

Microsoft had confirmed only days ago it was preparing to cut thousands of jobs, and Amazon also said it was making plans for “brutal” workforce cuts, all because of AI.

The Mail noted this was the second round of layoffs at Intel in just a year, after last winter’s 15% cutback.

The report said the company troubles are because of upstart competitors, compounding financial losses, and a declining stock price.

Chipmakers IBM, AMD, TSMC and NVIDIA have gained ground by investing in AI, the report said.

Intel’s stock price was $68 in 2021, but only about $21 now. It reported a loss of $821 million during the first quarter of the year, the report said.

It was Jassy who said, “As we roll out more Generative AI and agents, it should change the way our work is done. It’s hard to know exactly where this nets out over time, but in the next few years, we expect that this will reduce our total corporate workforce.”