Intel is shuttering its automotive structure enterprise and shedding most of its employees as a part of a broader restructuring on the chipmaker.
The information was first reported by The Oregonian/Oregon Reside, which cited an internal memo that was shared with staff Tuesday morning. Intel confirmed to TechCrunch that plans to wind down the auto enterprise had been communicated internally on Tuesday.
“As we’ve got stated beforehand, we’re refocusing on our core shopper and knowledge heart portfolio to strengthen our product choices and meet the wants of our prospects,” in line with an organization assertion supplied by spokesperson Cory Pforzheimer. “As a part of this work, we’ve got determined to wind down the automotive enterprise inside our shopper computing group. We’re dedicated to making sure a easy transition for our prospects.”
Pforzheimer stated the corporate doesn’t disclose the variety of affected staff primarily based on particular area, location, or enterprise.
Intel’s automotive enterprise may not be the dominant income generator on the semiconductor firm, however the division has been energetic in automated car expertise and the rising development of so-called “software-defined automobiles.”
Intel made quite a few multi-million investments in automotive, notably in the course of the heady and early days of autonomous car tech that kicked off round 2015. Again then, the corporate’s enterprise arm dedicated to speculate $250 million into automotive tech. Its profile was lifted after Intel acquired Mobileye in 2017 for $15.3 billion in a bid to increase its self-driving tech. Mobileye would later spin out as a standalone publicly traded firm, wherein Intel is a significant shareholder. In 2020, Intel’s automotive enterprise acquired Moovit in a deal that valued the Israeli startup at $900 million.
The layoffs come six months since Intel’s automotive enterprise showcased its expertise on the international tech commerce present CES 2025. Intel Automotive, whereas not one of many firm’s dominate companies, has tried to promote automakers on its software-defined car expertise, which included an AI-enhanced system-on-chip designed for automobiles and set for manufacturing by the top of 2025. The corporate debuted the SoC on the Shanghai Auto Present in April.
However the division’s future regarded shaky by April — even because it met with Chinese language automakers on the Shanghai Auto Present — when new CEO Lip-Bu Tan warned Intel staff of layoffs throughout the corporate attributable to falling gross sales and a dim outlook.
Earlier this month, the corporate stated it deliberate to put off 15% to twenty% of employees in its Intel Foundry division beginning in July. Intel Foundry designs, manufactures, and packages semiconductors for exterior shoppers.