Intel Cuts 4,000 Jobs Nationwide Due to Increase in Competition

Last updated on July 21st, 2025 at 06:28 am

Intel, the largest semiconductor firm in the world, has declared a huge layoff of close to 4,000 of its employees in the United States. This case of the Intel layoffs is one of the greatest mass layoffs in the history of the company and a good indicator of serious woes ahead for the tech giant. With the new CEO, Lip-Bu Tan, Intel is reorganizing its activities to cope with the current fast-paced world of semiconductors.

The coming Intel layoffs will hit Oregon, California, Arizona, and Texas, but the hit will be the heaviest on Oregon. Intel employees in Oregon alone will come up to a bulk of more than 2,400 workers, inclusive of the more than 1,500 workers based at the Hillsboro headquarters of the company. It is the single largest layoff in the history of Oregon and has been quite a lurch in the technological sector of this state.

Why Intel is Cutting Jobs?

The move by Intel to lay off so many people has been caused by the years of deteriorating market dominance and market competition. Intel, not long ago, positioned itself at the top of its game, which is now stumbling to the top, as told to employees by its CEO, Lip-Bu Tan. People now are saying 20, 30 years ago, we were the leader, Tan explained. “We do not belong in the first 10 semiconductor companies now.”

The semiconductor market has transformed significantly in the last decade. Taiwan Semiconductor Manufacturing Company (TSMC) has surpassed Intel as the most dominant chip manufacturer in the world today. In the meantime, Intel did not enjoy the sudden surge in artificial intelligence, and its competitors, such as NVIDIA, secured the highly profitable AI chip market.

The layoffs at Intel can be interpreted as a restructuring of the company with the main goal of decreasing expenditures and focusing on those fields of the business that are highly profitable. The company is quitting the car chip business and has given out its marketing processes to the consulting firm Accenture. The Intel Foundry business, which is involved in manufacturing and research, will lay off one out of every five jobs through such layoffs.

Impact of This Layoff on Workers and Local Economy

Intel layoffs are going to hinder the economy greatly, especially in the state of Oregon, where the company has its largest operating plant. Before these job layoffs, Intel employed more than 20,000 people in Oregon, making it one of the largest industrial employers in the state. Oregon Semiconductor work averages at $180,000 a year, which is more than the mean earnings in the state.

Employees involved in the Intel layoffs will get severance packages made of 13 weeks of payment, extra payment depending on the tenure of their employment, and one year of health cover. But this loss of high-paying occupations is likely to take away consumer spending ability and state tax revenues with a bang.

An annual tax break that Intel gets of around 260 million of tax breaks in Oregon makes people wonder whether Intel should continue using them now that they are reducing jobs. The state authorities are worried about the overall effects on the tech sector and the state of the economy.