Intel Corporation will lay off approximately 24,000 employees in 2025 — nearly a quarter of its global workforce — as part of a sweeping cost-cutting initiative under CEO Lip-Bu Tan.
The move also includes the cancellation of multi-billion-dollar expansion projects in Germany and Poland.
The semiconductor giant, which had 99,500 employees at the end of 2024, is set to reduce that number to 75,000 by the end of this year.
The cuts include job reductions carried out earlier in the second quarter, during which Intel also eliminated nearly half of its management layers and recorded $1.9 billion in restructuring expenses.
“There are no more blank checks. Every investment must make economic sense,” Tan wrote in a memo to employees on Thursday, calling the decisions “hard but necessary.” He emphasized a shift toward building only what customers need, when they need it, with a focus on execution and efficiency.
Intel posted a $2.9 billion net loss in the most recent quarter, with $12.9 billion in revenue. This marks the company’s sixth straight quarterly loss, its longest losing streak in 35 years.
While Intel beat analysts’ revenue estimates, the ongoing financial woes highlight the company’s struggle to keep pace with AI-focused competitors such as Nvidia and AMD.
As part of the restructuring, Intel is abandoning its plan to build a massive semiconductor fabrication plant in Germany that would have created 3,000 jobs.
Additionally, it has canceled a planned assembly and testing facility in Poland, which was projected to employ 2,000 workers. Both projects had already been postponed in 2024 before being scrapped entirely.
Intel will also consolidate its assembly and testing operations in Costa Rica, affecting more than 2,000 of the 3,400 employees at its facility there. These operations will be shifted to Vietnam and Malaysia to reduce costs and improve efficiency.
Furthermore, construction of Intel’s $28 billion chip plant in Ohio — initially scheduled for completion by 2025 — will be delayed further.
Chief Financial Officer David Zinsner said the pace of construction will be adjusted to match market demand. The facility, backed by funding from the U.S. CHIPS Act, is now unlikely to be completed before 2030.
Explaining the company’s overreach in recent years, Tan noted: “Over the past several years, the company invested too much, too soon – without adequate demand. In the process, our factory footprint became needlessly fragmented and underutilized.”
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