Intel announced plans to shut down its automotive chip division and eliminate jobs across the unit. The company told workers about the closure Tuesday at its Oregon campus. Chief Executive Lip-Bu Tan made the decision as part of his strategy to focus on core business areas. Intel will continue serving current automotive customers until existing contracts end. The tech giant did not reveal how many people will lose their jobs.
Tan became CEO three months ago and wants Intel to concentrate on data center processors and artificial intelligence chips. The automotive division generated smaller profits compared to other business units. Intel chips currently operate inside 50 million cars around the world. These processors handle entertainment systems and electric vehicle controls. The company plans to stop making new automotive semiconductors.
The closure affects Intel workers but does not impact Mobileye operations. Intel holds a majority ownership stake in the Israeli self-driving car chip company. Mobileye develops processors for autonomous vehicles and operates separately from Intel's automotive division. The shutdown represents part of Tan's broader plan to streamline company operations. He aims to reduce management layers and make Intel more competitive.
Additional layoffs will hit Intel Foundry manufacturing facilities soon. Reports suggest 20 percent of factory workers face potential job cuts. Tan seeks to simplify Intel's structure and improve engineering focus. The company has struggled with financial pressures and stronger competition recently. These changes redirect resources toward markets with higher growth potential.
Tan became CEO three months ago and wants Intel to concentrate on data center processors and artificial intelligence chips. The automotive division generated smaller profits compared to other business units. Intel chips currently operate inside 50 million cars around the world. These processors handle entertainment systems and electric vehicle controls. The company plans to stop making new automotive semiconductors.
The closure affects Intel workers but does not impact Mobileye operations. Intel holds a majority ownership stake in the Israeli self-driving car chip company. Mobileye develops processors for autonomous vehicles and operates separately from Intel's automotive division. The shutdown represents part of Tan's broader plan to streamline company operations. He aims to reduce management layers and make Intel more competitive.
Additional layoffs will hit Intel Foundry manufacturing facilities soon. Reports suggest 20 percent of factory workers face potential job cuts. Tan seeks to simplify Intel's structure and improve engineering focus. The company has struggled with financial pressures and stronger competition recently. These changes redirect resources toward markets with higher growth potential.
