Intel has confirmed it will cut more than 5,500 jobs across the US, with Oregon and California hardest hit.
The company said 2,932 jobs will go in Oregon and 1,935 in California. The move comes as Intel continues to fall behind its rivals, Nvidia and AMD, in the fast-growing AI chip market.
CEO Lip-Bu Tan admitted that Intel is no longer among the world’s top 10 semiconductor firms. Its market capitalisation has fallen to around $103 billion, less than half of its value 18 months ago. Nvidia, by contrast, has surged past $4 trillion.
Intel’s once-famous “Intel Inside” branding made it a household name. But the company now faces questions over its future direction. Tan said it may be “too late” to compete in training-focused AI chips, an area dominated by Nvidia. Intel will instead focus on rebuilding competitiveness and agility, though uncertainty remains around its upcoming 18A process node.
The cuts mark a sharp contraction for a company that once defined the semiconductor market.
The Recycler view
Intel’s story is a reminder of how quickly technology leadership can fade. “Intel Inside” once guaranteed trust, whatever computer you bought. Today, Intel risks becoming a legacy chipmaker, overtaken by faster, more agile competitors.
The parallel with our own industry is striking. OEMs have long relied on brand and reach, but when markets shift — whether through AI, regulation or sustainability demands — it is agility that counts. Stand still, and the market leaves you behind.
