Intel is pulling the plug on its automotive chip division, abruptly shifting gears to focus on its core client and data center operations.

The move includes laying off “most” of the employees in the automotive unit, according to a memo obtained by The Oregonian.

Despite previously bragging that its car chips power over 50 million vehicles and pushing flashy AI-powered features, Intel has now decided it’s not worth the gas.

The decision also torpedoes recent plans to bring its Arc GPUs to vehicles and enhance in-car navigation and voice systems.

Intel once shelled out $15 billion to acquire Mobileye in 2017, which it later spun off but still clings to with a majority stake.

This strategic about-face comes under the leadership of CEO Lip-Bu Tan, who promised workforce cuts in Q2 2025 to reboot the chipmaker’s trajectory.

Intel is also reportedly slashing jobs in its foundry business, with WARN notices revealing 107 employees will be laid off in Santa Clara.

So much for driving innovation—the company seems more interested in reverse.