Intel Layoffs 2025: In a dramatic shift that marks one of the biggest transformations in the company’s history, U.S. semiconductor giant Intel is laying off nearly 24,000 employees as part of a sweeping restructuring plan. The company confirmed that the job cuts and global project rollbacks are part of a broader strategy to cut costs and realign business priorities in a rapidly evolving chip industry dominated by artificial intelligence (AI).
The plan is being spearheaded by Intel’s recently appointed CEO, Lip-Bu Tan, who took over with a mandate to streamline the company’s bloated operations and catch up with rivals in the AI chip space.
From 1.09 Lakh to 75,000 Employees: A 25% Workforce Reduction
As of the end of 2024, Intel had approximately 1.09 lakh (109,000) employees globally. However, the company now plans to bring that number down to around 75,000 “core employees” by the end of 2025 — a staggering 25% reduction in headcount.
The layoffs and associated business realignments are already underway across Intel’s global offices. Affected regions include the United States, Germany, Poland, and Costa Rica, with certain projects either being canceled or dramatically scaled back.
Projects Cancelled in Germany and Poland
Intel has pulled the plug on its much-anticipated multi-billion-dollar semiconductor plants in Germany and Poland. These projects, previously expected to generate thousands of jobs and expand Intel’s global manufacturing footprint, were initially paused but have now been fully scrapped.
While R&D operations in Poland will continue for now, the withdrawal from these major investments highlights the company’s cautious approach to expansion in uncertain market conditions.
Costa Rica Shifts Operations to Vietnam
Costa Rica, long considered a key Intel hub, is witnessing a strategic shift. Intel is relocating its assembly and testing operations to Vietnam. However, not all is lost — about 2,000 employees will remain engaged at the Costa Rica facility, focusing on engineering and corporate roles.
This move is part of Intel’s broader attempt to optimise its global supply chain and reduce production costs while maintaining technical expertise.
Slowdown in Ohio, Exits in Automotive and RealSense
In Ohio, where Intel is building a mega-site for future chip production, construction has been significantly slowed down. The company says the move is to align with real-time market demand. While investment in the site will continue, the expansion will now proceed in phases rather than aggressively.
Intel has also shut down several non-core units over the past few months, including its automotive chip business and the RealSense division, which was working on computer vision and AI-powered depth sensing. These exits reflect Intel’s desire to focus more narrowly on areas with higher long-term profitability, such as AI, data centers, and foundry services.
Restructuring Comes at a High Cost
The cost of this massive reset is steep. Intel spent close to $1.9 billion in the current quarter alone on layoffs, severance, and restructuring-related expenses. As a result, the company reported a net loss of $2.9 billion, even as overall revenue held steady at $12.9 billion.
While PC chip sales have dipped, data center revenues are up 4% year-on-year. The foundry business — where Intel manufactures chips for other companies — saw a modest 3% growth, indicating some momentum in the company’s diversification strategy.
A Pivotal Moment for Intel
Intel’s massive shake-up marks a defining moment in its history. Once the undisputed leader in the semiconductor industry, the company has faced fierce competition in recent years from rivals like AMD, NVIDIA, and newer AI-focused chipmakers.
CEO Lip-Bu Tan’s leadership is now being tested as Intel tries to reinvent itself for a future dominated by AI, cloud computing, and edge technologies.
“We’re making tough decisions today to secure Intel’s future,” Tan said in a statement. “Our focus is on building a leaner, more agile Intel that can lead in the next era of compute.”
Whether this bold restructuring will help Intel reclaim its top spot in the chip industry remains to be seen, but what’s clear is that the company is betting big on transformation — even if it comes at a painful cost.
