According to foreign media reports, Intel plans to make major adjustments to its automotive architecture business and start layoffs in relevant departments. This move is an important part of the company’s overall restructuring plan.
Image source: Intel
Oregonian/Oregon Live was the first to report on the news. The media quoted Intel’s internal documents released to employees on the morning of June 24 as saying that the company will gradually reduce its automotive business. Intel later confirmed to TechCrunch, a technology media outlet,The company has been internally inJune 24Related plansCommunicated.
Intel spokesman Cory Pforzheimer said: “As we said before, we will refocus on our core customers and data center business to strengthen our product offerings and meet customer needs. As part of this effort, we have decided to phase down the automotive business in the Customer Computing business group. We are committed to ensuring a smooth transition for our clients. At the same time, Cory Pforzheimer noted that the company does not disclose the number of affected employees by specific region or business unit.
Although Intel’s automotive business unit is not the company’s core source of revenue, it has always been deeply involved in the research and development of autonomous driving technology and actively deploys emerging fields such as “software-defined vehicles (SDVs)”.
At the beginning of the boom in autonomous driving technology in 2015, Intel bet heavily on the automotive sector, and its venture capital arm had promised to invest $250 million in automotive technology. At that time, the company made a number of multimillion-dollar strategic layouts in the field of automotive technology.
Intel’s industry position has been significantly boosted by its $15.3 billion acquisition of automotive driver assistance system supplier Mobileye in 2017, a move aimed at strengthening its autonomous driving technology landscape. Mobileye was spun off as an independent public company in 2022, and Intel remains its major shareholder. In 2020, Intel’s automotive business unit acquired Moovit, an Israeli mobility solution provider, at a valuation of $900 million to further improve the technology ecosystem.
However, just half a year after Intel’s automotive business unit showcased its technology at the 2025 Consumer Electronics Show, the layoff plan was launched. Although the automotive business unit is not Intel’s core revenue pillar, the company continues to promote collaboration between car companies and focuses on its software-defined automotive technology solutions, including an artificial intelligence (AI)-enhanced system-on-chip (SoC) designed for cars and scheduled to go into production by the end of 2025. The chip made its debut at the Shanghai Auto Show in April this year.
However, even though Intel’s automotive business unit has intensively negotiated with Chinese car companies during the Shanghai Auto Show, the development prospects of the division have shown uncertainty. Intel’s new CEO, Lip-Bu Tan, issued a layoff warning to all employees at the time, bluntly saying that declining sales and a bleak outlook for the industry would trigger company-wide layoffs.
In addition, in early June this year, Intel announced that starting from July this year, its semiconductor foundry business unit (Intel Foundry) will launch a staff downsizing plan, which will lay off 15% to 20% of its employees. This division is mainly engaged in semiconductor design, manufacturing and packaging business for external customers.
