Intel Closes Auto Chip Unit, Cuts Global Jobs

Intel is shutting down its automotive chip division, which powered technology in over 50 million vehicles, as part of a major restructuring effort under new CEO Lip-Bu Tan. The company is laying off most employees in the segment, including 107 positions at its Santa Clara headquarters, with broader global job cuts expected, especially in the foundry division, potentially affecting up to 20% of the workforce. The restructuring is driven by disappointing sales, a significant net income loss, and aims to refocus Intel on its core client and data center businesses. Intel will honor existing customer commitments before winding down the automotive unit, while its self-driving tech subsidiary Mobileye remains unaffected. The company is also outsourcing much of its marketing to Accenture and adopting AI-driven business models. These changes reflect Intel’s struggle to remain competitive amid mounting pressure from rivals like Nvidia and Samsung.