Intel has announced it is shutting down its automotive architecture business and initiating layoffs, as part of a larger strategic realignment to focus on its core business units.
According to internal communications shared with employees earlier this week, Intel stated it is “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 restructuring, the company has made the decision to wind down its automotive division, which was housed within its Client Computing Group.
While Intel’s automotive efforts never became a central revenue stream, the division had a growing presence in the evolving “software-defined vehicle” landscape. Over the years, Intel invested heavily in automotive tech, including its 2017 acquisition of Mobileye for $15.3 billion and the 2020 acquisition of mobility platform Moovit, valued at $900 million. Mobileye later spun out as a publicly traded company, with Intel retaining a significant stake.
Intel Automotive made headlines just six months ago at CES 2025, showcasing its latest innovations, including an AI-powered system-on-chip (SoC) aimed at powering next-generation vehicles. The SoC was expected to begin production by late 2025 and had been introduced at the Shanghai Auto Show in April. Despite these efforts, signs of instability began to emerge following internal warnings of layoffs amid falling revenue and a shifting industry outlook.
Intel has not disclosed how many employees are affected by the decision, but emphasized its commitment to ensuring a smooth transition for its customers.
As the company refocuses on high-priority areas like client computing and data center solutions, the closure of its automotive division signals a significant pivot in Intel’s long-term strategy.