Big tech news recently landed like a shockwave, signaling a massive shift for chip giant Intel. Last Thursday, reports from The Verge highlighted that the company is undertaking a sweeping overhaul. This includes shedding a huge number of jobs and pulling back from major projects in several countries.
Intel revealed in its second-quarter 2025 earnings report that it plans to cut roughly 24,000 employees by the end of 2025. This move will shrink its core team from about 99,500 people down to 75,000. It’s a significant trim, cutting nearly a quarter of Intel’s total workforce. The new CEO, Lip-Bu Tan, is leading this big restructuring effort. His aim is to make Intel a leaner, more financially stable company.
Intel also announced it’s closing down massive projects in Germany and Poland. These projects were once touted to involve billions of euros in investment and create thousands of jobs. But now, they’re being stopped. The company is also moving its assembly and test production from Costa Rica. These operations will now shift to larger hubs in Vietnam and Malaysia. Costa Rica will still keep around 2,000 employees, focusing on engineering and administrative tasks.
Changes Closer to Home
The United States isn’t untouched by these big changes. Intel announced it will slow down how fast it builds its factory in Ohio. The company wants to match its investments with what the market actually needs. Still, Intel intends to finish the project as the demand grows. Overall, Intel hopes these cuts, a slimmer setup, and more connected business groups will save it up to $17 billion over the year.
This bold restructuring comes at a tricky time for Intel. The company recently reported a $2.9 billion loss for the quarter. This happened even though their revenue stayed steady at $12.9 billion. What’s more, Intel spent $1.9 billion just to move staff around and make these internal changes.
According to CEO Tan, Intel had expanded too much without ensuring there was enough demand for its products. This led to a very spread-out and complicated production system. Now, he says, Intel will only approve new investments if they show a clear and quick return. Even with these widespread cuts, Intel remains dedicated to its shift towards artificial intelligence. The company plans to release its Panther Lake processors in 2025 and Nova Lake chips in 2026. These new processors are a key part of Intel’s tech comeback.