Intel is shutting down its automotive processor division and letting go of most of the employees working in that segment. The decision comes as part of the company’s ongoing effort to scale down and focus more on its main businesses, such as client computing and data centres. The move was officially shared with staff in an internal note on Tuesday, first reported by OregonLive.
The chip giant said it will continue to fulfil its existing commitments in the automotive segment before exiting. Intel hasn’t shared how many jobs will be affected, but called it a “wind down” of the entire automotive vertical. The company’s official response mentioned, “We are committed to ensuring a smooth transition for our customers.”
Intel’s chips have reportedly been used in nearly 50 million vehicles globally, mostly in tasks like processing information, helping with electric vehicle support, or vehicle performance. But despite the widespread presence, the company never treated this as a major revenue driver, and didn’t report separate earnings from the segment.
Even as Intel retreats from making chips for cars, it continues to hold a majority stake in Mobileye, its Israel-based self-driving tech firm. The latest changes do not appear to impact Mobileye’s operations for now.
This is not the only team facing cuts. New CEO Lip-Bu Tan, who joined in March, has already warned employees of “several months” of layoffs as the company tries to recover from poor sales and a weak outlook. Last week, Intel began notifying manufacturing workers that up to 20 percent of jobs in that unit could be slashed starting July.
Intel is also pulling the plug on in-house marketing. It plans to outsource most of its marketing work to Accenture, which is expected to use AI tools to handle campaigns. That change alone is likely to cause more layoffs next month.
No media interviews have been given by Tan so far. Internally, though, there’s a strong sense that Intel is preparing for a leaner, faster version of itself by trimming down large segments of its workforce and operations. For now, the company is keeping its focus narrowed on core chip businesses.
