Intel has set in motion a significant workforce reduction plan, impacting around 107 employees in California, including approximately 45 engineers. This initiative aims to cut $500 million in operating costs within the fiscal year. The layoffs represent an ongoing trend at Intel, which had previously reduced its workforce by 5% in 2024.

An Intel spokesperson stated, “As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organizational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”

Last Wednesday, Intel issued notifications in accordance with Californian law, alerting employees about their impending layoffs. These employees are connected to Intel’s Santa Clara headquarters and are part of a broader strategy to achieve operational expense reductions of $1 billion by 2026.

Among the positions affected are numerous engineering roles, including physical design and cloud software engineers.

The layoffs are scheduled to begin on July 15, offering employees either a 60-day notice or a four-week notice with nine weeks of pay and benefits. The impact on engineering roles brings into question Intel’s focus on efficiency while continuing to employ substantial engineering talent.