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Intel Corp. plans to fire 529 employees in Oregon this month as part of a cost-cutting initiative that may affect as many as 20% of its global workforce.

According to a source quoted by Bloomberg, up to one-fifth of Intel's global workforce may eventually be impacted, even though the firm has not yet revealed the exact number of layoffs.

According to a regulatory filing, the layoffs will take effect on July 15 at Intel's campuses in Aloha and Hillsboro.

Intel has started a significant cost-cutting initiative to become leaner and more effective under its new CEO, Lip-Bu Tan.  A person familiar with the situation told Bloomberg that more than one-fifth of Intel's employees may eventually be impacted by the layoffs, even though the company has not publicly acknowledged the exact number of jobs being terminated.

The company said in a statement that the layoffs in Oregon are a part of a larger effort to create "a leaner, faster, and more efficient company."  It went on to say, "We will be able to better serve our customers' needs and strengthen our execution by removing organizational complexity and empowering our engineers."

Intel also decided to 'treat people with care and respect" and said the decision was reached after "careful consideration of what's needed to position our business for the future."

Cloud software experts, semiconductor product developers, and physical design engineers are among the crucial engineering positions that will be impacted by the layoffs. Additionally, senior leadership positions like vice presidents of IT and business leads are being eliminated.

In addition to laying off employees in the United States, Intel is closing its Munich, Germany-based automotive chip company. Under the direction of veteran Intel executive Jack Weast, the group concentrated on software-defined vehicle systems. It is expected that the majority of workers in that unit will lose their employment.

In addition to nine weeks of pay and benefits, affected employees are being offered a 60-day notice period or a shorter four-week notice period.

 According to a report obtained by The Oregonian, Intel's internal foundry business, which manages chip manufacture, is probably going to be among the hardest hit. According to the document, up to 20% of manufacturing employees might be let go.

According to Intel CEO Tan, the organization is eschewing the notion that team size determines a leader's effectiveness. Rather, he wants Intel to concentrate on smaller, more productive teams leading important areas. Accenture, which may employ AI to handle consumer contacts, will also handle some of the company's marketing work.

Intel made layoffs after a difficult 2024 in which it let go of 15,000 employees. This may be Intel's largest worker reorganization in years, with additional layoffs probably in the works. The company's decision comes at a difficult time for the whole tech sector. According to Layoffs, more than 62,000 tech workers have already lost their employment in 2025. Other tech giants are also making significant layoffs including Microsoft, Google, Amazon, and Meta.