In a restructuring plan under its new CEO Lip-Bu Tan who succeeded the former in March 2025, Intel Corporation has announced plans to reduce its workforce by about 24,000 to 25,000 employees (15% of its worldwide personnel).
Based on the Q2 2025 financial statement issued by Intel, the corporation experienced a loss of $2.9 billion, almost twice the amount during the corresponding reporting period in 2024, despite an income level of $12.9 billion. Intel has since decided to slash its core workforce strength of 99,500 employees to approximately 75,000 workforces by the year 2025.
As part of the restructuring, Intel has cancelled fabrication and test projects in Germany and Poland. Additionally, it will consolidate Costa Rica operations into sites in Malaysia and Vietnam, affecting over 2,000 out of 3,400 employees in Costa Rica.
Intel has also said it will slow the construction of its mega-fab in Ohio, pushing the full build-out into the 2030s. Such decisions agree with the aim of the company to increase capital expenditure to the level of the confirmed market demand.
CEO Tan has introduced internal reforms, including direct tape-out approvals, reintroduction of Hyper-Threading, and a mandate for cost discipline across all divisions. The company plans to spin off its Networking and Edge (NEX) business, which brought in $5.8 billion in 2024.
Intel’s restructuring also includes a return-to-office mandate effective September 2025, and a reduction in upper management by 50%. The company aims to cut operating expenses by $17 billion for fiscal year 2025.
After the news, Intel stocks sank by about 9 percent after analysts expressed concerns about the firm falling behind its rivals such as Nvidia, which recently hit a market cap of more than $4 trillion.
Other major tech firms, including Microsoft and Meta, have also laid off thousands of employees in 2025 amid ongoing global restructuring trends.
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