Intel closes down its automotive chip division and lays off most of its employees

Intel has decided to finally slow down in the race for automotive technology. The company has announced the closure of its automotive division and massive layoffs in this area. This decision is part of a large-scale cost-cutting strategy and a review of business priorities. This was reported by OregonLive after studying Intel's message to its employees.

What is known

According to Intel representatives, the company will fulfil all current obligations to customers, but the "majority" of employees in the automotive division will lose their jobs. In an official statement, the company stressed that it is focusing on key areas such as client solutions and data centres, leaving aside niche businesses such as automotive.

It is worth noting that the automotive business has never been Intel's main source of revenue. However, the fact that more than 50 million cars in the world use Intel processors is impressive. These chips help electric vehicles, improve performance and provide driver information.

However, the subsidiary Mobileye, which develops technologies for autonomous driving, will continue to operate and will not be affected by the cutbacks.

Intel's new CEO, Lip-Bu Tan, who joined the company in March 2025, warned of several months of layoffs due to falling sales and a less-than-rosy profit outlook. Instead of high-profile interviews and promises, he chose the method of quiet but painful reforms.

The closure of the car division is not the only one. Intel has already notified its production staff of a 20% cut starting in July. And the marketing department will be completely transferred to the consulting company Accenture. Human marketing seems to be replaced by cheaper AI bots.

In short, Intel is accelerating its own transformation. Time will tell whether it will become more effective. But it certainly won't be done on autopilot.

Source: OregonLive