Intel announced significant layoffs and operational scale-backs as part of a strategic restructuring in 2025. The company will reduce its core workforce by around 24,000 employees, shrinking by about one-quarter from 99,500 core employees at the end of 2024. Intel is halting mega-fab projects in Germany and Poland, cancelling assembly and test operations in Costa Rica, and slowing construction in Ohio to align spending with market demand. These changes come under CEO Lip-Bu Tan’s leadership, who aims to streamline operations, align production with customer demand, and improve profitability amid challenges including a competitive AI market. Despite restructuring costs leading to a quarterly loss, Intel projects $17 billion in expense reductions for the year and remains focused on advancing key chip development like the Panther Lake and Nova Lake processors.
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