Intel Layoffs 2025: Latest Information, Your Rights, and Severance Pay Explained

Intel is undergoing one of its largest workforce reductions in company history. In its Q2 2025 earnings release, Intel confirmed that it is cutting approximately 15% of its core workforce and plans to reduce headcount even further — down to 75,000 employees by year-end, a 22% reduction from the end of 2024 (Reuters).

The job cuts form part of CEO Lip-Bu Tan’s cost-discipline plan, which aims to streamline operations, shrink management layers, and refocus Intel’s manufacturing roadmap.

Employees across Canada and the US are already being affected (The Globe and Mail):

• 59 jobs were cut in the Bay Area on Dec. 9 (KRON4)
• 669 Oregon workers were fired in November (CTech)

Additional reductions are expected through attrition and “other means.”

Key Facts About the Intel Layoffs

• Total planned reduction: From ~96,400 employees in June 2025 to ~75,000 by December 2025
• Percentage cut: 15% core workforce cut completed or underway; 22% total reduction vs. 2024 levels
• Reason: Streamlining operations, removing middle-management layers, reducing costs, and focusing on disciplined manufacturing investments
• Restructuring cost: $1.9 billion in Q2 2025 related to job cuts and efficiency measures
• Majority of layoffs already completed by the time of Intel’s Q2 release
• Broader strategy: Reduce factory expansions, consolidate packaging operations, reassess long-term manufacturing plans
• Target structure: A “faster-moving, flatter, more agile organization,” according to Intel

Why Intel Is Cutting Jobs

Intel is working to correct several years of strategic and operational setbacks. According to Intel’s Q2 materials and comments from CEO Lip-Bu Tan:

• Intel has fallen behind competitors in the AI and advanced chip manufacturing space
• Leadership is enforcing strict cost discipline — Tan’s message: “No more blank checks.”
• Intel is reassessing the future of its 18A and 14A manufacturing processes and may exit certain foundry offerings if demand does not justify continued investment

If you were laid off or received a severance offer, do not sign anything until you understand your full rights under Canadian employment law.

Severance Packages for Intel Employees

In Canada, severance for non-unionized Intel workers is based on common law, which looks at factors such as:

• Your length of service
• Your age
• Your position, seniority, and scope of responsibility
• The availability of comparable jobs in the market

Depending on these factors, Intel employees in Canada can receive up to 24 months of severance pay under common law.

Intel may present a “standard” package that:

• Offers only ESA minimums (far less than common law entitlements)
• Ignores RSUs, stock options, ESPP and long-term incentives
• Under-values commissions or variable compensation
• Gives a short deadline (e.g., 5–10 days) to sign
• Provides a lump sum or salary continuation with limited explanation

This is why you should never assume Intel’s first offer is fair. Having a severance package reviewed is often the difference between a few months of pay and potentially up to 24 months of total compensation.

Potential Issues With Intel Layoff Notices

Common problems we see when employees in Canada are laid off include:

• Incorrect severance calculations that only consider ESA minimums
• Insufficient notice relative to your years of service and seniority
• Temporary layoff language used without a clear contractual right to do so
• Unclear handling of RSUs, stock options, ESPP and bonuses
• Short deadlines designed to pressure quick acceptance
• Incomplete breakdowns of how an employer arrived at the severance figure

Any one of these issues can be a sign that your offer is below your legal entitlement under Canadian law.

Common Red Flags in Severance Offers

Be especially cautious if your severance package:

• Includes only a few weeks or a handful of months of pay after many years of service
• Does not continue benefits for a reasonable period
• Leaves RSUs, stock options, ESPP or long-term incentives out of the calculation
• Does not clearly explain how bonuses and commissions are treated
• Describes your termination as “restructuring” or “realignment” but still ends your employment permanently
• Comes with a 24–72-hour deadline or other intense pressure to sign
• Asks you to sign away rights (including future claims) in exchange for basic amounts you are already owed

Wrongful Dismissal and Intel Layoffs

A wrongful dismissal happens when an employer like Intel fails to provide the full severance pay required under common law after terminating a non-unionized employee without cause.

You may have a wrongful dismissal claim if:

• Your severance package is far lower than what similar employees receive in court decisions
• Your employment contract’s termination clause is unenforceable under current Canadian case law
• You are pressured to sign quickly with threats that the offer will “disappear”
• You are let go during maternity, parental, disability, or medical leave
• The company labels the situation as a “temporary layoff” with no realistic recall and no valid contractual basis
• Your employer refuses to recognize RSUs, bonuses, commissions or benefits in the severance calculation

What to Do After Intel Lays You Off

If Intel has just given you notice of termination or a severance offer:

1. Do not sign anything right away. Signing waives your right to seek more severance later.
2. Collect all relevant documents:
   • Offer letter and employment contracts
   • Commission plans, bonus policies and equity grant agreements (RSUs, options, ESPP)
   • Recent pay stubs and T4s
   • Any emails or memos about your role, performance, or restructuring
3. Use the Severance Pay Calculator to get a quick estimate of what you may be owed under Canadian law.
4. Take notes about your duties and responsibilities, especially if you held a specialized or senior role (e.g., enterprise account manager, senior solutions engineer, sales leader).
5. Speak with an employment lawyer who works for employees (not employers) to assess whether Intel offer reflects your full common law entitlement.

You generally have up to two years from the date of termination to pursue a legal claim — the deadline in your severance letter is often an internal company timeline, not a legal one.

How Samfiru Tumarkin LLP Can Help With Intel Layoffs

If Intel has laid you off — or if you are concerned that upcoming restructuring might affect your role — talk to an employment lawyer before you sign anything.

Samfiru Tumarkin LLP has helped over 50,000 Canadians secure the compensation they’re owed, and has earned more than 3,000 five-star reviews across the country.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.