Intel is planning to lay off a fifth of its factory workers globally.

Citing an internal memo from Intel manufacturing VP, Naga Chandrasekaran, The Oregonian reported that the company is looking to reduce its headcount by between 15 and 20 percent, with the majority of cuts set to take place in July.

“These reductions will be based on a combination of portfolio changes, level and position elimination, skill assessment for remaining positions, and some hard decisions around our project investments,” the memo reportedly read. “We are also taking into consideration factory operations impact.”

The Oregonian said Intel declined to comment directly on the memo but told the news outlet that it was making decisions “based on careful consideration of what’s needed to position our business for the future,” adding that “removing organizational complexity and empowering engineers” would allow the chipmaker to better serve its customers.

“[Intel will] treat people with care and respect as we complete this important work,” the company told The Oregonian.

Intel told DCD it has no additional comments to add beyond the statement included in the original Oregonian report.

The news outlet also reported that Intel is planning major cuts to other parts of its business, although the percentage of employees outside the manufacturing arm likely to be impacted is not yet known.

Following the appointment of CEO Lip-Bu Tan in March 2025, it was reported that Intel was planning to cut 20 percent of its workforce as part of a restructuring initiative that would streamline Intel’s management and make engineering the key focus of the company.

Speaking at Intel’s Foundry Direct Connect event in San Jose last month, Tan further said that he wanted to once again make Intel Foundry a success by strengthening its R&D efforts and manufacturing capabilities.

Prior to Tan taking the helm, Intel laid off 15,000 workers in the second half of 2024 following heavy financial losses. In that round of job cuts, Intel offered buyouts and early retirement packages to some employees, but is reportedly not planning to do that this time.

The company has also pushed back the opening of its two fabs in New Albany, Licking County, Ohio, to the early 2030s, half a decade later than originally planned.