Intel to Shut Down Automotive Architecture Business
Intel has announced plans to shutter its automotive architecture business and lay off the majority of its staff as part of a larger restructuring effort within the company. The news was first reported by The Oregonian/Oregon Live, citing an internal memo shared with employees on Tuesday. Intel has confirmed the decision to wind down the auto business internally.
According to a statement provided by spokesperson Cory Pforzheimer, Intel is refocusing on its core client and data center portfolio to enhance product offerings and meet customer needs. The company has made the strategic decision to discontinue the automotive business within the client computing group, ensuring a smooth transition for customers.
While Intel’s automotive business may not be a primary revenue driver, the division has been actively involved in automated vehicle technology and the emerging trend of “software-defined vehicles.” The company has made significant investments in automotive technology, including the acquisition of Mobileye in 2017 for $15.3 billion and the purchase of Moovit in 2020 for $900 million.
The layoffs come on the heels of Intel’s showcase of automotive technology at CES 2025, where the division highlighted its AI-enhanced system-on-chip designed for vehicles. However, the future of the automotive business appeared uncertain following warnings from CEO Lip-Bu Tan about company-wide layoffs due to declining sales.
Earlier this month, Intel announced plans to lay off 15% to 20% of workers in its Intel Foundry division, which designs, manufactures, and packages semiconductors for external clients. The restructuring efforts are part of Intel’s broader strategy to streamline operations and focus on core business areas.
