Intel has shut down its automotive building business and has fired most of its staff as part of a broader restructuring at its chipmaker.
The news was first reported Tuesday morning by Oregon/Oregon Live, citing an internal note shared with employees. Intel confirmed to TechCrunch that plans to remove the automotive business on Tuesday had been communicated internally.
“As I said before, we are refocusing our core clients and data center portfolios to enhance our product offering and meet our customers’ needs,” provided by spokesman Cory Pforzheimer. “As part of this work, we have decided to step down from the automotive business within the Client Computing Group. We are committed to ensuring a smooth transition for our customers.”
Pforzheimer said the company does not disclose the number of employees affected based on a particular region, location or business.
Intel’s automotive business may not be the dominant revenue generator for Semiconductor Company, but the division is aggressive in emerging trends in automated vehicle technology and so-called “software-defined vehicles.”
Intel has invested millions of millions of investments in cars, particularly during the difficult and early days of self-driving car technology, which began around 2015. At the time, the company’s venture arm promised to invest $250 million in automotive technology. Its profile was lifted to expand its autonomous driving technology after Intel acquired Mobileye in 2017 for $15.3 billion. Mobileye later spins out as a standalone public company where Intel is a major shareholder. In 2020, Intel’s automotive business acquired Moovit in a deal valued at $900 million.
The layoffs come six months after Intel’s automotive business introduced technology at the Global Technology Trade Show CES 2025. Intel Automotive is not one of the dominant companies in the company, but it sought to sell automakers with software-defined vehicle technology.
However, the future of the division looked volatile by April, even if they met with Chinese carmakers at the Shanghai Auto Show, but warned new CEO Lip-Bu Tan to in-house layoffs due to declining sales and a dim outlook.
Earlier this month, the company said it plans to fire 15% to 20% of workers in the Intel Foundry Division, which will be launched in July. Intel Foundry designs, manufactures and packages semiconductors for external clients.
