Intel to Lay-Off 24,000 Employees, Scrap Europe Projects in Major Restructuring Drive

Intel is set to slash about 24,000 jobs—nearly a quarter of its global workforce—by the end of 2025 as part of a sweeping cost-cutting plan led by new CEO Lip-Bu Tan. The company also confirmed it will scrap major manufacturing projects in Germany and Poland, initially intended to support its global expansion.

Intel, which had 99,500 employees at the end of 2024, will cut down to 75,000. In a memo to staff, Tan described the layoffs and halted investments as "hard but necessary decisions." The restructuring includes management cuts and factory consolidations, with the company already spending $1.9 billion on these changes in the second quarter alone.

Despite better-than-expected revenue of $12.9 billion in the last quarter, Intel posted a $2.9 billion loss—its sixth straight quarter in the red. Once a leader in chip manufacturing, Intel is now trailing behind AI-driven rivals like Nvidia and AMD.

Intel's planned $30 billion "mega-fab" in Germany and a 2,000-job facility in Poland are now permanently shelved. A Costa Rica site is also being downsized, affecting over half of its 3,400 workers, as operations shift to Vietnam and Malaysia. Meanwhile, Intel's $28 billion Ohio plant, originally due by 2025, is now delayed until after 2030.

Tan blamed past overinvestment for Intel's financial troubles. "We built too much, too fast, without enough demand," he said. He also emphasized the need for smarter spending: "There are no blank checks—every investment must make sense."

The job cuts include both layoffs and attrition, with 50% of management roles eliminated to flatten the corporate structure. Tan is also enforcing a return-to-office policy by September, aiming to boost collaboration and efficiency.

Intel is also exiting non-core areas. It shut its automotive chip unit in June and spun off its RealSense vision tech business in July. Tan said these moves are part of a cultural shift toward faster innovation and reduced bureaucracy.

The goal is to cut $17 billion in operating costs this year while regaining lost ground in the AI and PC markets. "The future of Intel is ours to build—but we have no time to waste," Tan concluded.