TLDR
- Intel (INTC) stock surged over 7% Tuesday after announcing plans to lay off 529 employees at Oregon facilities starting July 15
- The job cuts are part of Intel’s broader restructuring plan to reduce global workforce by 20%, affecting over 100,000 employees
- Intel’s market share dropped to 65.3% in Q1 2025, the lowest level since 2002, as competitors like AMD gain ground
- The company previously announced over 100 job cuts in Santa Clara, California as part of cost-cutting efforts
- New CEO Lip-Bu Tan faces pressure to engineer a turnaround while Intel stock has lost nearly one-third of its value over 12 months
Intel stock climbed over 7% Tuesday following news of planned layoffs at its Oregon operations. The chipmaker announced it will cut 529 jobs at four facilities in Aloha and Hillsboro starting July 15.
The job cuts represent part of Intel’s broader restructuring plan. The company aims to reduce its global workforce by 20%, affecting more than 100,000 employees worldwide.
Intel filed the layoff notice with regulators Monday. The cuts will impact workers at the company’s main North American fabrication hub.
The stock surge extends recent gains driven by investor hopes. New CEO Lip-Bu Tan faces pressure to turn around the struggling company.
Speculation about potential asset sales has also boosted shares. Despite Tuesday’s gains, Intel stock remains down nearly one-third over the past 12 months.
Market Share Decline Pressures Intel
Intel’s market position has weakened considerably in recent quarters. The company’s chip shipment share fell to 65.3% in Q1 2025, according to Citi research.
This marks Intel’s lowest market share since Citi began tracking the industry in 2002. Competitors like Advanced Micro Devices have gained ground at Intel’s expense.
The market share decline of more than 1.8% reflects Intel’s competitive challenges. The company struggles to keep pace with rivals in key segments.
Intel previously announced job cuts in Santa Clara, California. The company eliminated over 100 roles there in recent weeks.
Bloomberg reported in April that Intel could cut over 20% of its staff. This exceeds the 15% reduction Intel initially announced.
Cost-Cutting Efforts Intensify
Intel described the layoffs as necessary for efficiency improvements. The company wants to become “leaner, faster, and more efficient,” according to a statement.
The restructuring aims to remove organizational complexity. Intel believes this will better serve customer needs and strengthen execution.
Cost-cutting measures target Intel’s bottom line improvement. The company faces pressure to boost profitability while investing in growth.
Intel’s Oregon facilities play a crucial role in manufacturing operations. The state hosts some of the company’s most important production sites.
The layoffs begin as Intel navigates a challenging competitive landscape. The company must balance cost reductions with innovation investments.
Intel did not respond to requests for additional comment. The company’s regulatory filing provided basic details about the planned cuts.
The chipmaker employed over 100,000 people globally at the end of last year. The workforce reduction represents a major organizational shift.
Investors appear optimistic about Intel’s restructuring efforts. The stock’s Tuesday gains suggest market confidence in the turnaround plan.
The July 15 start date gives affected employees limited time to prepare. Intel’s Oregon operations will see immediate workforce reductions.
The company’s cost-cutting initiatives extend beyond Oregon facilities. Intel continues evaluating workforce levels across all locations.
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