Intel is closing its automotive division

Intel has decided to shut down its Intel Automotive division, which developed automotive architecture, and lay off its employees. The company sent employees a notice of the closure and later confirmed this information in a statement to the media, TechCrunch reports.

"As we have said previously, we are refocusing on our core client and data center portfolio to strengthen our product offerings and meet the needs of our customers. As part of this work, we have decided to wind down the automotive business within our client computing group. We are committed to ensuring a smooth transition for our customers," an Intel spokesperson said.

In a comment, the spokesperson also noted that Intel would not disclose the exact number of positions being cut, which depend on region, location, or business.

Intel's automotive division, although not the company's main source of revenue, was still actively working on vehicle automation technologies.

The division's official website states that Intel processors are installed in more than 50 million cars. The company's chips, used by 18 manufacturers, contribute to the development of electric vehicles, provide drivers with useful information and help improve vehicle performance.

During the operation of this division, Intel has made many multi-million dollar investments in the automotive industry since 2015. At that time, the company's venture capital division promised to invest $250 million.

In 2017, Intel also acquired Mobileye for $15.3 billion to expand its self-driving technology development. However, Mobileye later spun off into a separate public company, with the chipmaker as the majority shareholder. In 2020, Intel's automotive division also acquired free GPS app Moovit, valuing the startup at $900 million.

In general, things at Intel have not been going well for over a year. To correct this situation, the newly appointed CEO of the company, Lip-Bu Tan, has undertaken reforms, within the framework of which it is planned to lay off about 20% of the workforce. In addition, Tan noted that in the future Intel will focus only on those products that can be sold at 50% more than their cost price.