Intel to cut 24,000 jobs as CEO aims to reshape chipmaker’s future

Intel is planning to cut approximately 24,00 jobs by the end of 2025. The numbers represent nearly a quarter of its global workforce, a drastic measure aimed at streamlining operations and reversing a string of financial losses.

The layoffs began in the second quarter of 2025 and are part of a broad restructuring under new CEO Lip-Bu Tan, who took his position in March. According to reports, in an internal memo to staff, Tan described these as “hard but necessary decisions” to revive the struggling chipmaker. Intel aims to reduce its core employees from 99,500 at the end of 2024 to about 75,000 by year-end 2025.

Financial pressure drives cuts

The job cuts follow a challenging period for Intel. The company reported a USD 2.9 billion quarterly loss on USD 12.9 billion in revenue for the quarter ending June 2025, marking its sixth consecutive quarterly loss. This period also saw Intel book USD 1.9 billion in restructuring costs. CEO Tan stated the company had “invested too much, too soon –without adequate demand”, leading to a fragmented and underutilised factory footprint.

Intel plans to slash operating expenses by USD 17 billion this year as part of its strategy to regain profitability and competitiveness.

Global impact

The restructuring extends beyond job cuts, significantly impacting Intel’s global operations. The company is abandoning plans for a multibillion-dollar “mega-fab” in Germany, which would have employed 3,000 workers. Similarly, an assembly and test facility in Poland. Designed for 2,000 employees, it has also been cancelled. These projects were previously paused in 2024 before being fully axed under Tan’s leadership.

The company will consolidate its assembly and test operations from Costa Rica to larger facilities in Vietnam and Malaysia. This shift affects over 2,000 of Intel’s 3,400 employees in Costa Rica, though some engineering and office roles will remain.

Intel has also shut down its automotive chipmaking business in June and spun off its RealSense computer vision unit in July. The cuts include eliminating about half of Intel’s management layers, a move designed to reduce bureaucracy and increase decision-making speed. The company is also implementing a full return to office policy for September.

CEO Tan stated, "There are no more blank checks. Every investment must make economic sense." He emphasised building what customers need, when they need it, and earning their trust through consistent execution.

Stiff competition

Intel's restructuring comes as the company faces fierce competition, particularly from rivals like Nvidia and AMD, who have gained ground in the rapidly expanding artificial intelligence (AI) chip market. The company aims to refocus its efforts on AI chips and strengthen its position in the PC processor market.

The extensive changes signal a fundamental shift in Intel's approach, prioritising efficiency and customer-driven demand over previous expansion strategies. The company seeks to emerge as a more agile and focused entity in a competitive global technology landscape.