Core Viewpoint - Intel is gradually shutting down its automotive business unit, the Intel Architecture Automotive Group, and laying off most of its employees in this sector as part of a broader restructuring plan aimed at cost reduction and focusing on its core chip business [1][3]. Group 1: Business Restructuring - The layoffs primarily affect the automotive business, including roles in research, engineering, and project management [3]. - This move is part of Intel's "IDM 2.0" strategic transformation initiated in 2024, which includes a global workforce reduction of 15,000 employees [3]. - Intel has also announced the suspension or exit from several non-core business areas to improve financial performance [3]. Group 2: Competitive Landscape - The closure of the automotive division reflects Intel's struggles in the autonomous driving and automotive chip markets, facing intense competition from rivals like Nvidia and Qualcomm [3]. - Intel's subsidiary Mobileye has seen a decline in market share in recent years due to this competitive pressure [3]. Group 3: Financial Performance - Intel's financial performance has been under pressure, with a projected 22% year-over-year revenue decline in 2024 and a net loss of $7 billion [3]. - The company is also pausing construction projects for chip factories in Germany and Poland and is seeking to sell its stake in the programmable chip division, Altera [3]. - Despite these efforts, Intel continues to face competition from foundry giants like TSMC and Samsung, as well as challenges related to the surge in demand for AI chips [3].