
Intel Winds Down Automotive Division, Prepares for Major Layoffs
Intel has confirmed plans to phase out its in-house automotive chip team and lay off most of the employees in that segment. In a memo to staff on Tuesday, the company stated that it will honor existing contracts with vehicle manufacturers and suppliers but will essentially dissolve the unit that designed and marketed its small automotive platform. This move supports Intel's new strategy under new CEO Lip-Bu Tan to concentrate on client computing and data center operations. "We are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers," the statement said. "As part of this work, we have decided to wind down the automotive business within our Client Computing Group. We are committed to ensuring a smooth transition for our customers."
Intel's automotive division has never generated a major share of revenue, and the company does not report its results separately. Still, Intel highlights that over 50 million vehicles worldwide use its processors for services such as infotainment, electric vehicle management, and driver assistance. Despite that footprint, the division remains small compared with the rest of Intel's diverse chip portfolio. Importantly, the decision does not affect Mobileye, which Intel spun off and took public in 2023. Mobileye continues to operate independently, even though Intel retains nearly all of the voting shares. Intel has already informed its manufacturing staff of plans to cut up to 20% of its workforce starting in July. It will also outsource much of its marketing function to Accenture, relying on AI to manage campaigns. These actions are much needed for Intel's determination to make operations leaner and sharpen its focus on the markets where it remains strongest.
Intel's automotive division has never generated a major share of revenue, and the company does not report its results separately. Still, Intel highlights that over 50 million vehicles worldwide use its processors for services such as infotainment, electric vehicle management, and driver assistance. Despite that footprint, the division remains small compared with the rest of Intel's diverse chip portfolio. Importantly, the decision does not affect Mobileye, which Intel spun off and took public in 2023. Mobileye continues to operate independently, even though Intel retains nearly all of the voting shares. Intel has already informed its manufacturing staff of plans to cut up to 20% of its workforce starting in July. It will also outsource much of its marketing function to Accenture, relying on AI to manage campaigns. These actions are much needed for Intel's determination to make operations leaner and sharpen its focus on the markets where it remains strongest.