Intel shrinks automotive business, lays off most employees in the sector

Chip giant Intel has officially confirmed that it will gradually shrink its automotive business and lay off most employees in this field. This move is the latest move in its global strategic restructuring. The company responded to the media that the adjustment is aimed at refocusing on core businesses, strengthening the client computing and data center product portfolio, and the client computing division to which the automotive business belongs will be streamlined.

It is worth noting that there are currently more than 50 million cars in the world equipped with Intel processors, and the business contraction has raised questions about the continuity of customer service. In this regard, Intel clearly promised: "It will ensure a smooth transition for existing automotive customers", but did not disclose the specific transition plan and timetable. It is reported that the layoffs are mainly aimed at the automotive business R&D, engineering and project management teams, and the affected employees will receive severance pay.

This adjustment is a continuation of Intel's "IDM 2.0" strategic transformation. Since the reorganization was launched in 2024, the company has laid off a total of about 15,000 employees (accounting for 15% of the total number of employees) and continued to withdraw from non-core business areas. Analysts pointed out that the contraction of the automotive business reflects Intel's failure in the field of autonomous driving and in-vehicle chips, although the company acquired electric vehicle chip company Silicon Mobility early last year and launched products such as in-vehicle discrete graphics cards. Under the leadership of CEO Lip-Mo Chen, Intel is responding to the challenge of declining profits in the client computing business by streamlining the architecture and cutting costs.