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

Intel is shutting down its automotive architecture business and laying off most of its staff as part of a broader company restructuring aimed at refocusing on its core client and data center segments. The decision was communicated internally on June 25, 2025, with Intel emphasizing a commitment to a smooth transition for customers. While the automotive division was not a major revenue driver, it had been active in automated vehicle technology and software-defined vehicles, investing heavily since around 2015, including the $15.3 billion acquisition of Mobileye in 2017, which later became a publicly traded company with Intel as a major shareholder. Despite showcasing new AI-enhanced system-on-chip (SoC) technology for vehicles at CES 2025 and the Shanghai Auto Show earlier this year, the automotive business’s future appeared uncertain amid broader company challenges. New CEO Lip-Bu Tan had already warned of layoffs due to falling sales and a bleak outlook. The wind-down follows Intel’s recent announcement of layoffs in its Foundry division