Intel U.S. layoffs hit 5,000 as cost cuts deepen

Intel is deepening its sweeping cost-cutting campaign, disclosing new details that show more than 5,000 employees will lose their jobs across four U.S. states, a dramatic escalation that underscores the mounting challenges facing the fallen chip giant.

In newly updated filings under the Worker Adjustment and Retraining Notification (WARN) Act, Intel has more than doubled its planned layoffs in key California sites and quadrupled its original estimates in Oregon. In total, the revised notices point to at least 5,000 cuts across California, Oregon, Arizona, and Texas, with the brunt falling on the company’s core research and manufacturing hubs.

The expanded cuts come as Intel tries to regain its competitive footing amid fierce rivalry from Taiwan’s TSMC and a global slowdown in demand for traditional computer chips. In Santa Clara, the company’s headquarters city, and in Folsom, home to a major research campus, Intel now expects to shed 1,935 jobs, up sharply from initial figures. In Oregon, where Intel operates its massive Ronler Acres campus near Hillsboro, its largest site worldwide, the company has raised its estimate to 2,392 layoffs, nearly 12% of its local workforce. Cuts in Chandler, Arizona, have also been revised upward to nearly 700.

These latest rounds follow a series of global reductions, with the headcount in Israel now on track to drop below 9,000 for the first time since 2012. As of mid-2025, Intel employed about 9,350 people in Israel, down sharply from 10,800 in 2023 and a peak of 12,000 in 2021. The decline follows a series of aggressive global cost-cutting waves. A previous round of layoffs and voluntary retirements last year saw about 1,500 Israeli employees leave the company.

For the first time in decades, Intel’s Kiryat Gat site is cutting deep into production roles. Roughly 200 employees are being let go as Intel pushes to automate and remotely manage production lines that were once heavily staffed by skilled technicians and engineers. The move comes on top of a previous round that saw about 400 early retirements last year.