Intel to Slash 15% of Workforce Amid Manufacturing Setbacks and Strategic Shift
- tech360.tv
- Jul 25, 2025
- 2 min read
Intel will cut 15% of its global workforce as part of a sweeping restructuring plan under new Chief Executive Officer Lip Bu Tan, the company announced Thursday.
The move is aimed at streamlining operations and addressing years of strategic missteps that have left the chipmaker trailing in key markets, including artificial intelligence chips.
Intel reported a workforce of 96,400 at the end of June and plans to reduce that number to 75,000 by the end of the year. The reduction includes layoffs and attrition, with the company eliminating about 50% of its management layers.
Tan, who took over in March, outlined a new cost-conscious strategy, stating that Intel will no longer build factories ahead of demand. Instead, the company will only invest in manufacturing capacity when there is clear customer need.
“There are no more blank checks,” Tan wrote in a memo to employees. “Every investment must make economic sense.”
Intel is focusing on its 18A manufacturing process, which currently has few external customers. The company warned in securities filings that it may exit the chip manufacturing business if it fails to secure significant external demand for its next-generation 14A process.
Tan said Intel will slow construction of new factories in Ohio and halt planned facilities in Poland and Germany. The company will also consolidate chip packaging operations in Costa Rica with existing sites in Vietnam and Malaysia.
On a call with analysts, Tan said he will personally approve all major chip designs and emphasised a disciplined investment approach.
Intel forecast a third-quarter loss of 24 cents per share, deeper than analysts’ expectations of an 18-cent loss. However, it projected revenue between USD 12.6 billion and USD 13.6 billion, with a midpoint above Wall Street estimates.
Second-quarter revenue was flat at USD 12.9 billion, beating expectations of USD 11.92 billion. The company posted an adjusted loss of 10 cents per share, compared with forecasts of a 1-cent profit.
Intel’s unadjusted loss for the quarter was 67 cents per share, significantly worse than the estimated 26-cent loss.
The company said job cuts contributed to restructuring costs of USD 1.9 billion in the second quarter.
Intel to cut 15% of workforce, reducing headcount to 75,000 by year-end
CEO Lip Bu Tan shifts strategy to demand-driven factory investments
Construction halted in Poland and Germany, slowed in Ohio
Source: REUTERS
