Intel to Cut 24,000 Jobs and Scrap Factory Projects in Major Reset

Intel has announced a sweeping overhaul under CEO Lip‑Bu Tan, unveiling plans to lay off roughly 24,000 employees—about 15% of its core workforce—by the end of 2025 as part of a broader strategy to streamline operations and regain competitiveness.

The company will also cancel major factory expansion plans in Germany and Poland and delay its massive Ohio megafab, shifting assembly and test operations from Costa Rica to hubs in Vietnam and Malaysia.

CEO Lip‑Bu Tan called the moves “hard but necessary decisions,” stating the need to reduce overinvestment and refocus Intel on aligning capacity with actual demand. “I do not subscribe to the belief that if you build it, they will come,” Tan said, pledging more customer-driven investment.

In Q2 2025, Intel posted a net loss of $2.9 billion on revenue of $12.9 billion, beating estimates but weighed down by roughly $1.9 billion in restructuring charges.

Intel says it will end the year with approximately 75,000 core employees, down from 99,500 in 2024, to reach a leaner, more agile profile. Plans are underway to exit less-performing regions while emphasizing its 14A chip process and renewed investment in AI and data center markets.