The unit, buried inside the Client Computing Group, was never much more than a side hustle using cut-down PC tech for dashboard duties.
Intel claims it has shipped more than 50 million chips into cars, but spread across years and the entire globe, that's hardly setting the world on fire.
Importantly, this closure does not affect Mobileye. That operation was carved out in 2023 and floated, though Chipzilla still clings to 99.3 per cent of the voting shares. So despite the illusion of independence, it's still in the fold.
The cull is part of CEO Lip-Bu Tan's ongoing house cleaning. He is dutifully following Pat [kicking] Gelsinger’s abandoned playbook but with a lot more steel. Gelsinger closed a few distractions but failed to wield the axe with enough gusto. Tan, on the other hand, is giving pink slips like sweets.
"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," the company said.
The internal bloodletting began at the end of April. Tan had already warned staff that heads would roll, and now up to 20 per cent of factory workers are being shown the door.
Chipzilla's marketing department is being outsourced to Accenture and some AI algorithms, proving that even human spin doctors are replaceable.
Exec-level musical chairs continue, with some old hands ejected and fresh faces plonked into high seats. For now, Tan appears to be doing what Gelsinger couldn't and making cuts that hurt.