Intel’s global workforce will shrink from 108,900 to 75,000 by year-end.
The company posted a USD 2.9 billion net loss in Q2 2025 amid restructuring.
Factory plans in Germany, Poland, and Ohio are paused to cut operating costs.
Intel has reportedly confirmed that it will cut over 25,000 jobs by the end of the year as part of a major restructuring. With this move, the company hopes to reverse years of underperformance and inefficiency. The announcement was confirmed in the company’s Q2 2025 earnings report, and it will reduce its global workforce from 108,9000 at the end of this year to approximately 75,000 employees.
SurveyThe job cuts will be implemented through a combination of layoffs, attrition, and organisational restructuring. This news comes after Intel reduced its workforce by approximately 15%, or 15,000 positions, since April of this year, following a similar scale of reductions in 2024.
For the unversed, Intel has posted a net loss of USD 2.9 billion in the second quarter including major restructuring costs. The revenue, as per the reports, remained flat at USD 12.9 billion, but was more than the analysts predicted. Now, for the September quarter, the company forecasted revenue between USD 12.6 billion and USD 13.6 billion, as per Wall Street’s average estimate.
In a letter to employees, CEO Lip-Bui Tan acknowledged the challenges ahead but stressed the importance of taking decisive action.
According to reports, Intel will not be working on new manufacturing plants in Germany and Poland for at least a few years. It has also postponed work on the USD 28 billion Ohio plant and announced the consolidation of its Costa Rica operations, shifting testing to Vietnam and Malaysia. All of these actions are aimed at reducing annual operating expenses to USD 16 billion by 2026.
The company, which was once dominant in semiconductors, has struggled to maintain its lead amidst advancements in AI and smartphone segments. The company has experienced setbacks in its manufacturing strategy.
Tan has also hinted at a cultural and operational overhaul, with a cautious approach moving forward. On the other hand, investors and analysts are looking for signs of progress, particularly in the next generation process.
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Ashish Singh
Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile
