Report: Intel to layoff up to 20% of division responsible for Ohio plant

NEW ALBANY, Ohio (WCMH) -- Intel layoffs have been anticipated for months, but new reports suggest many of them will be concentrated in the division responsible for Ohio's plant.

According to an internal memo verified by The Oregonian/Oregon Live, Intel plans to lay off up to a fifth of its Foundry workers. Intel Foundry runs the manufacturing side of Intel, including the $28 billion semiconductor fab project under construction in Licking County. The memo is allegedly from Intel manufacturing Vice President Naga Chandraskaran, who said the company is targeting job reductions between 15%-20% in the Foundry division, with most reportedly taking place in July.

"We are taking steps to become a leaner, faster and more efficient company," an Intel spokesperson told NBC4. "Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution."

The spokesperson would not confirm or deny the reported Foundry cuts, but Intel CEO Lip-Bu Tan announced in April that an undisclosed number of layoffs would happen this year, likely by the end of Q2. These cuts are on top of the 15,000 workers Intel let go last August because of ongoing financial uncertainty. See previous coverage of rumored Intel layoffs in the video player above.

"I’m a big believer in the philosophy that the best leaders get the most done with the fewest people. We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities," Tan said in April.

As of December 28, 2024, Intel had 108,900 employees worldwide. Intel has not publicized how many employees work for Foundry, but the company said it is largely made up of Intel Foundry and its other major division, Intel Products. If an estimated half of Intel's workforce is a part of the Foundry, more than 10,000 employees could be let go.

Intel Foundry has been the company's least profitable division for some time, and is not expected to break even until 2027. Tan and other Intel executives have indicated these cuts will likely affect middle management most, as Tan is prioritizing removing the middle man to increase efficiency.

Despite Ohio's plant falling under the Foundry division, Monroe Township official Troy Hendren said he does not think Ohio workers will be affected as heavily as in other states. Hendren said Intel provides consistent relevant updates to local municipalities like Monroe Township affected by the plant, such as a week's heads up when Intel delayed the project's completion into 2031 earlier this year.

Hendren said he had not received any updates about the layoffs. Further, he said many employees at the Ohio plant now are outside contractors rather than Intel employees, leaving Ohio with fewer people eligible to be laid off.

James Cape, president of the Intel Alumni Network, worked at Intel from 1983 to 2001. He said the company looks different today, and he and other former employees are upset about mistakes that have led to Intel's continued financial distress.

"Us 'old-timers' are very sad and continue to cheer Intel on, but from the sidelines," Cape said. "All of us alums recognize the strategic importance of Intel to high-end U.S. manufacturing capability and national security, so from that perspective, I think it is critical that they 'right the ship' and succeed."

Tan said these cuts will help the company do better, which was reiterated by the Intel spokesperson.

"We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work," the spokesperson said.