Intel hits the brakes on its automotive enterprise, and layoffs have began
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 Stay, which cited an inside memo that was shared with workers Tuesday morning. Intel confirmed to TechCrunch that plans to wind down the auto enterprise have been communicated internally on Tuesday.
“As we’ve mentioned beforehand, we’re refocusing on our core consumer and information heart portfolio to strengthen our product choices and meet the wants of our clients,” in line with an organization assertion offered by spokesperson Cory Pforzheimer. “As a part of this work, we’ve determined to wind down the automotive enterprise inside our consumer computing group. We’re dedicated to making sure a easy transition for our clients.”
Pforzheimer mentioned the corporate doesn’t disclose the variety of affected workers primarily based on particular area, location, or enterprise.
Intel’s automotive enterprise won’t be the dominant income generator on the semiconductor firm, however the division has been energetic in automated car know-how and the rising development of “software-defined autos.”
Intel made quite a few multimillion-dollar investments in automotive, significantly throughout 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 develop its self-driving tech. Mobileye would later spin out as a stand-alone publicly traded firm, through which Intel is a serious 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 after Intel’s automotive enterprise showcased its know-how on the world 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 know-how, which included an AI-enhanced system-on-chip designed for autos 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 appeared shaky by April — even because it met with Chinese language automakers on the Shanghai Auto Present — when new CEO Lip-Bu Tan warned Intel workers of layoffs throughout the corporate attributable to falling gross sales and a dim outlook.
Earlier this month, the corporate mentioned 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.