Intel announces job cuts of 24,000 employees in 2025, scaling back from numerous projects globally, including Germany and Poland among others.
Intel, once the dominant player in PC chip technology, is currently undergoing significant changes as it attempts to stay competitive in the rapidly evolving tech industry.
From the 1980s through the early 2000s, Intel held a strong position in the market, particularly in main computer processors. However, the company grew overconfident and failed to keep up with changing trends, according to industry analysts.
In the current market, mobile chips and AI processors make up a large portion of the demand. Intel has struggled to catch up with its competitors, such as Apple, AMD, NVIDIA, and Qualcomm, who invested heavily in mobile processors and AI technologies starting from the 2000s.
As a result, Intel is now undergoing a major restructuring, with a focus on cost-cutting, workforce reduction, and strategic realignment towards AI and foundry services. The company has already cut about 15% of its workforce, approximately 24,000 to 33,000 employees, and aims to end the year with around 75,000 core employees.
CEO Lip-Bu Tan emphasizes strengthening Intel’s core product portfolio and AI roadmap, focusing especially on edge AI and advanced semiconductor manufacturing technologies like the 18A node and upcoming Xeon processors (Panther Lake/Sierra Forest) to compete with dominant players like NVIDIA and AMD. Intel is pursuing a "startup mentality" to become more agile and financially disciplined, including revisiting large capital projects such as slowing down construction in Ohio and consolidating assembly operations internationally.
The financial results in Q2 2025 show continued operating losses impacted by $1.9 billion in restructuring charges related to layoffs and operational changes. Despite near-term challenges, Intel forecasts revenue of $12.6 to $13.6 billion for Q3 2025, with plans to improve profitability by focusing capital and human resources on the most critical growth sectors — primarily AI and foundry services.
Intel faces substantial competitive pressure, as NVIDIA dominates AI training and inference markets with much larger AI revenues, making Intel’s market reclamation efforts an uphill battle. The company’s turnaround depends on executing advanced manufacturing timelines like the 18A node without delays, delivering competitive AI chips, and successfully growing foundry capabilities with financial discipline.
The exact timing of the next round of Intel layoffs is currently unknown. Intel continues to lose money this quarter, with operating losses totalling $7 billion in 2023, on top of the $5.2 billion lost in 2022. Intel announced last month that it would be laying off thousands of US workers to focus on AI restructuring, marking the latest in a series of workforce reductions over the past few years.
Intel’s current focus is on AI restructuring and downsizing plans. The company is still working to keep up with its rivals without hemorrhaging money, so more layoffs and project cancellations could still be announced going forward. Hope is riding on Intel’s upcoming processors, including the brand new Panther Lake chips and the latest Nova Lake chips, expected to launch in the near future.
However, Intel’s Intel Core Ultra Series 1 AI chips, released in 2024, performed notably below the competition. In response, Intel accelerated the release of its next-gen Intel Core Ultra Series 2 chips within the same year. Intel has also pulled back from previously laid plans to build large fabrication facilities in Germany and Poland, which would have provided thousands of jobs. Instead, Intel plans to consolidate operations in Costa Rica and send them to Vietnam, impacting assembly and testing operations.
As Intel navigates these challenges, the company will need to balance cost cuts with innovation and retain key talent amid an industry-wide skills shortage. The future remains uncertain, but Intel is determined to regain its position as a leader in the chip industry.
- Despite Intel's focus on AI restructuring and downsizing plans, additional layoffs and project cancellations might be announced in the future to save costs.
- Intel is determined to regain its position as a leader in the chip industry, with the upcoming Panther Lake chips and the latest Nova Lake chips expected to launch soon.
- Intel's Intel Core Ultra Series 1 AI chips, released in 2024, performed below the competition, prompting the company to accelerate the release of Intel Core Ultra Series 2 chips.
- Instead of building large fabrication facilities in Germany and Poland, Intel plans to consolidate operations in Costa Rica and send them to Vietnam, affecting assembly and testing operations.
- Microsoft's Xbox Series X, a popular gaming device, operates on advanced hardware technology, placing it in a different category compared to Intel's core PC and laptop business.
