The struggling chipmaker is planning reductions of up to 15% to 20% at its factory division, called the Intel Foundry.

Retail chatter around chipmaker Intel Corp. (INTC) grew on Stocktwits after reports suggested the company plans to lay off up to 20% of its foundry workforce.

Sentiment surrounding Intel stock was ‘neutral’ (47/100) by late Tuesday, and the message volume was ‘normal.’

INTC sentiment and message volume as of 12:16 a.m., June 18 | source: Stocktwits

A watcher pointed to his previous prediction of Intel continuing its right-sizing operations. “I predicted two months ago that Intel $INTC would continue cutting jobs, and that's still happening,” they said.

Another user lauded the cuts, adding that one of the biggest hurdles against a breakup of Intel was management’s reluctance to lay off employees. “I agree with this. Engineers should be able to manage themselves with minimal supervision. I like this at $35.”

“Show that US chips are struggling, and therefore, cuts are needed. Which now positions that the govt needs to do more to protect and help US [chip]makers,” they said.

On Tuesday, the Oregonian broke the news concerning the latest job cut. Citing a memo from Intel manufacturing Vice President Naga Chandrasekaran, the report said the company is planning reductions of up to 15% to 20% at its factory division, called the Intel Foundry.

Chandrasekaran reportedly said, “These are difficult actions but essential to meet our affordability challenges and current financial position of the company. It drives pain to every individual.”

The majority of the cuts would be implemented in July.

Intel’s CFO, David Zinsner, said on the earnings call in late April that the company plans to manage its business conservatively in the second half of 2025 due to the uncertain geopolitical and macroeconomic climate.

The chipmaker also said it would implement a series of steps, including streamlining the organization and eliminating management layers, to get back on track and reduce 2025 operating expenditure by more than 20%.

Ahead of the first-quarter earnings release, a Bloomberg report said Intel planned to announce 20% job cuts.

The Oregonian report also said Intel plans workforce eliminations in other parts of its businesses too, potentially cutting more than 10,000 jobs in aggregate.

This is in addition to the 15,000 job cuts the company implemented in 2024. The company lagged peers due to product missteps and a bloated structure that stymied its ability to capitalize on emerging opportunities. 

After Pat Gelsinger was ousted as CEO without accomplishing a turnaround at the struggling chipmaker, Lip-Bu Tan has taken over its leadership.

Intel ended Tuesday’s session up 0.29% at $20.80, defying the broader market weakness. The stock is up about 4% year-to-date.

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