Intel has announced plans to reduce its global core workforce from 99,500 at the end of 2024 to around 75,000 by year-end, equating to approximately 24,000 job cuts in 2025. This marks a substantial 31% reduction over two years and serves as a core component of CEO Lip‑Bu Tan’s aggressive restructuring plan
Restructuring Under CEO Lip‑Bu Tan
Since assuming leadership in March 2025, CEO Lip‑Bu Tan has spearheaded a sweeping turnaround strategy aimed at realigning Intel’s operations around efficient chipmaking and AI innovation. The workforce reductions—carried out via layoffs, attrition, and restructuring—impact business units including manufacturing, foundry, engineering, and corporate roles.
The company is also abandoning multibillion-dollar fabrication projects in Germany and Poland, consolidating operations in Costa Rica, and decelerating construction of its mega‑fab in Ohio
Financial Imperative Behind the Cuts
In Q2 2025, Intel reported $12.9 billion in revenue but posted a net loss of $2.9 billion, including $1.9 billion in restructuring costs tied to layoffs and project cancellations
Despite the flat revenue, Intel’s datacenter business grew 4%, while PC chip revenue declined by 3%. Its foundry revenue rose 3% to $4.4 billion. Still, Intel lowered its 2025 capital expenditure forecast to $18 billion, down from prior estimates, aiming to reduce operating expenses by $17 billion in 2025 and to reach $16 billion in 2026
Impact on Operations and Workforce
- Targeted Layoffs: Over 10,000 factory and foundry workers are expected to be laid off, including staff in manufacturing and process development roles Business Standard.
- Geographic Focus: Cuts are largely centered in the U.S.—notably at headquarters roles in Santa Clara—and extend to operations in Costa Rica and Europe. Up to 195 jobs may also be lost at Intel’s Leixlip facility in Ireland
Strategic Goals & Future Direction
Lip‑Bu Tan’s restructuring is aimed at creating a leaner, faster, and more responsive company, moving away from bloated middle management, accelerating chip process development (14A and 18A nodes), and focusing on AI chip production and foundry services for external clients like Nvidia and Broadcom
With nearly one‑third of staff reductions slated for completion by year-end, Intel intends to reinvest in core competencies and scale more sustainably.
Summary
Intel is laying off approximately 24,000 employees in 2025, reducing its workforce to about 75,000 core employees. This move supports CEO Lip‑Bu Tan’s restructuring plan, aimed at restoring competitiveness in AI and contract chipmaking. Intel is canceling expansion projects, consolidating operations, and reducing expenses amid ongoing losses in a bid to reposition the company for long-term sustainability.
