Intel Reportedly Shutting Down Auto Arm, Laying Off Most Employees Amid Ongoing Cost-Cutting Drive

Intel (INTC) is reportedly shutting down its automotive unit and will lay off most employees in that segment, the company told staff in an internal message.

“The company plans to wind down the Intel architecture automotive business,” said the memo sent to employees, as cited by The Oregonian. The report said “most” staff in that group will be let go, though Intel did not disclose a precise headcount. 

Intel’s stock edged 0.7% lower in midday trade on Wednesday.

The chipmaker does not break out automotive revenue or employment figures in its financial reports, though it has previously stated that its technology is used in over 50 million vehicles globally.

The automotive exit is one of several cost-cutting measures underway under CEO Lip-Bu Tan, who took the helm in March. 

In a company-wide message in April, Tan warned of “several months” of layoffs. Since then, Intel has announced workforce reductions across multiple units. 

It recently informed manufacturing teams that up to 20% of roles could be eliminated beginning in July. Last week, the company said it would outsource much of its marketing operations to Accenture, citing a shift toward using AI-driven strategies to promote products more efficiently.

“We are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers,” Intel told The Oregonian in a statement. “As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.”

Intel’s stock has gained more than 10% this year, but has fallen nearly 30% over the past 12 months.

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