Intel to Cut 24,000 Jobs in 2025, Cancel Major Projects to Save $17 Billion
In a memo to employees, Intel CEO Lip-Bu Tan has laid out a clear strategy to revive the struggling chipmaker.
As part of sweeping cost-cutting measures, the company is eliminating 24,000 jobs this year—roughly a quarter of its workforce—and scrapping major projects in Germany and Poland. With a significant portion of the layoffs completed in the second quarter, Tan, who took over as CEO in March, described the decisions as “hard but necessary.”
Intel employed 99,500 core workers at the end of 2024. By the end of 2025, that number is expected to shrink to 75,000. The job cuts include slashing roughly half of Intel’s management layers and booking $1.9 billion in restructuring charges. The company aims to reduce operating expenses by $17 billion this year, while shifting focus to AI chips and regaining market share in PC processors from rivals like AMD and NVIDIA.
Calling Q2 the “first step in the right direction,” Tan told employees, “The future of Intel is ours to build—but we have no time to waste.”
Despite the turmoil, Intel surpassed Wall Street expectations with $12.9 billion in revenue. However, it posted a $2.9 billion quarterly loss—marking its sixth consecutive quarter in the red and the company’s longest such streak in 35 years.
“There are no more blank checks. Every investment must make economic sense,” Tan said. “We will build what our customers need, when they need it, and earn trust through consistent execution.”
In addition to the layoffs, Intel is abandoning its plan to build a multibillion-dollar “mega-fab” in Germany, which was expected to employ 3,000 workers. The company has also canceled an assembly and test facility in Poland that would have created 2,000 jobs. Both projects had been on pause since 2024 before being fully shelved.
Meanwhile, progress on Intel’s $28 billion chip factory in Ohio—initially scheduled for completion in 2025—will be slowed to better align spending with market demand.
