Intel is shutting down its automotive processor business. In a memo seen by The Oregonian, Intel informs employees that it plans to lay off “most” of the division’s employees.
“As we’ve said before, we’re refocusing on our core customer and data center portfolio to strengthen our product offering and meet the needs of our customers,” Intel spokeswoman Sophie Metzger told The Verge. “As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers.”
For many years, Intel has invested heavily in its automotive business, which produces chips that power infotainment systems, dashboards, and other vehicle controls. Intel’s technology is used in more than 50 million cars, and until now, it seemed that the company intended to expand its presence in the market. Last year, the company announced new artificial intelligence chips for cars that will help improve navigation systems and voice assistants. The company also revealed plans to use its Arc GPU in cars.
In 2017, Intel also acquired Mobileye, a self-driving car technology company, for $15 billion. Later, Mobileye went public as a separate company, but Intel still holds a controlling stake.
Intel’s newly appointed CEO Lip-Bu Tan said in April that in the second quarter of 2025, the company would be forced to “reduce the size” of its workforce as part of plans to get the chipmaker back on track. The company has also informed employees about layoffs in the foundry, according to The Oregonian, and a recent WARN (Worker Adjustment and Retraining Notification) in California indicates that 107 employees at the Santa Clara headquarters will be affected.
