Intel Hits the Brakes: Automotive Business Shuts Down, Layoffs Begin

Intel is reportedly winding down its automotive architecture business, leading to significant layoffs. This move is part of a broader strategic restructuring by the chipmaker, aiming to refocus on its core client and data center portfolios. The decision comes despite Intel's past substantial investments and recent showcases in the automotive sector.

Intel Shifts Gears: Automotive Division Shut Down

Intel has confirmed its decision to cease operations in its automotive architecture business, a move that will result in the layoff of most of its staff. The internal communication regarding this strategic shift was made on Tuesday, June 25, 2025. This restructuring emphasizes Intel's commitment to strengthening its core product offerings in client and data center segments.

Key Takeaways

• Intel is discontinuing its automotive architecture business.
• The decision will lead to widespread layoffs within the division.
• This is part of a larger company-wide restructuring to prioritize core client and data center businesses.
• The automotive division had been active in software-defined vehicles and automated vehicle technology.

A History of Automotive Ambition

Intel's involvement in the automotive industry dates back to significant investments made around 2015, including a $250 million commitment to automotive tech. A major highlight was the 2017 acquisition of Mobileye for $15.3 billion, which later spun out as a public company with Intel retaining a significant stake. In 2020, Intel's automotive business further expanded by acquiring Moovit for $900 million.

Despite these substantial investments and recent efforts, such as showcasing an AI-enhanced system-on-chip for vehicles at CES 2025 and the Shanghai Auto Show, the division's future became uncertain. Warnings of company-wide layoffs due to falling sales and a dim outlook from new CEO Lip-Bu Tan in April foreshadowed this decision.

Broader Restructuring at Intel

This closure of the automotive business follows earlier announcements of workforce reductions within Intel. Earlier this month, the company revealed plans to lay off 15% to 20% of workers in its Intel Foundry division, with those cuts expected to begin in July. These actions underscore a period of significant strategic realignment for the semiconductor giant as it navigates a challenging market landscape.

Sources

• Intel hits the brakes on its automotive business, and layoffs have started, TechCrunch.