Intel is shutting down its automotive chip business. In a memo seen by The Oregonian, Intel is telling employees it plans to lay off the “vast majority” of employees in the division, citing its intention to focus on its “core portfolio of consumer and data center products.”
See also: New Intel CPU bugs leak sensitive data
Intel has invested heavily in the automotive sector in recent years, creating chips that enhance infotainment, instrumentation and other vehicle control systems. Its technology already works in more than 50 million vehicles and until recently seemed to be aiming for further growth.
Last year, the company announced new chips with built-in AI for cars that promise to improve navigation and voice assistants in vehicles, and it also revealed plans to integrate its Arc graphics card into cars.
See also: Intel: Is it preparing to lay off thousands of employees?
Intel also acquired autonomous vehicle technology company Mobileye in 2017 for $15 billion. Mobileye later went public as an independent company, but Intel still retains a majority stake .
Intel's newly appointed CEO, Lip-Bu Tan, said in April that the company would need to "downsize" its workforce in the second quarter of 2025 as part of its efforts to return to growth. According to The Oregonian, the company also informed employees of upcoming layoffs in its foundry business.
See also: Intel: Pat Gelsinger is no longer the company's CEO
Additionally, a related WARN (Worker Adjustment and Retraining Notification) notice in California indicates that the layoffs will affect 107 employees at Intel's Santa Clara headquarters.
Source: theverge
