According to The New York Times, as the chipmaker gets ready for a significant overhaul, Intel intends to lay off around 25,000 employees. By the end of 2025, the corporation hopes to have reduced its personnel from 108,900 at the end of the previous year to roughly 75,000. According to the report, a combination of layoffs, attrition, and other measures would be used to reduce employment. Since April 2025, Intel has already cut its employment by around 15%, or roughly 15,000 positions. Over 15,000 jobs were cut last year; this comes after that. When Intel announced its financial results for the second quarter of 2025, it confirmed the extent of the layoffs. Restructuring expenses associated with the most recent reduction were reflected in the company’s USD 2.9 billion net loss. Despite being flat at USD 12.9 billion for the quarter, revenue nonetheless exceeded market estimates. With a midpoint of USD 13.1 billion, Intel now projects sales for the current quarter to be between USD 12.6 billion and USD 13.6 billion. According to economists surveyed by The New York Times, this is more than the average prediction of USD 12.6 billion for the September quarter.
Intel’s new CEO, Lip-Bu Tan, acknowledged the challenging time the company is going through in a letter to staff members. He wrote, “I understand that the last few months have not been easy.” “To improve efficiency, increase accountability, and streamline the organization at all levels of the business, we are making difficult but necessary decisions.” The corporation has also halted plans to develop new plants in Germany and Poland. Construction at its Ohio location will be slowed down, and part of its Costa Rican businesses will be consolidated by moving them to Vietnam and Malaysia. According to Intel, these actions are a part of a larger initiative to lower operating expenses and boost productivity throughout its international operations. The business declared in April that it would reduce its yearly operating costs from $17.5 billion to $17 billion in 2025 and then to $16 billion in 2026. Intel stated on Thursday that it is still on course to reach those goals. Formerly a market leader in chips, Intel has had difficulties lately. Despite dominating the microprocessor market during the 1990s boom in personal computers, it missed the emergence of smartphones and has since lagged behind in the rapidly expanding artificial intelligence chip market, which is currently controlled by firms like Nvidia. In March, Lip-Bu Tan, a former Intel board member and venture financier, assumed the role of CEO. He has pledged to streamline the business’s operations and boost the competitiveness of its offerings. However, he has acknowledged that it would take time to turn the business around.The success of Intel’s most recent production method, 18A, is one of the main issues for investors. Patrick Gelsinger, the former CEO, had asserted that this technology would enable Intel to match the most cutting-edge processors produced by Taiwan Semiconductor Manufacturing Company (TSMC). Even though the technology is still crucial to the company’s future chip development, current Intel executives no longer make such claims.
Tan also discussed plans for 14A, a next-generation chip technology. This time, he said, Intel will exercise greater caution and won’t construct new factories without clear orders from external clients. In his letter to employees, Tan stated, “The company invested too much, too soon — without adequate demand — over the past several years.” Our factory footprint was unnecessarily divided and underutilized as a result. We have to change our direction. Continued losses and slower innovation than its competitors have put pressure on Intel’s shares. According to industry analysts, in order to win back investor trust, the company will need to demonstrate quicker progress in its manufacturing process and regain market share in AI chips.
