Up to 24,000 posts to go as company refocuses on engineering
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Lip-Bu Tan, Intel
Intel will lay off about 15% of its employees this year (around 24,000 people) and reduce its workforce from approximately 96,400 at the end of June to about 75,000 employees by the end of this year.
The new CEO, Lip-Bu Tan, who has been at the helm since March, presented a turnaround strategy focused on cost reduction, more efficient production, and strict investment discipline. Factories will now only be built when there is actual demand – instead of anticipating growth. As a result, the construction of chip factories in Ohio is being delayed, and plans in Poland and Germany have been scrapped.
“There are no more blank checks,” Tan wrote in a memo to employees reported by Reuters. “Every investment must make economic sense. We will build what our customers need, when they need it, and earn their trust through consistent execution.”
In the second quarter of 2025, Intel posted revenues of $12.9 billion, marking the end of four consecutive quarters of declining sales. Nevertheless, the company suffered a net loss of $2.9 billion, including $1.9 billion in restructuring costs.
Tan’s turnaround strategy includes an end to remote work and a focus on regaining its position in the AI space where it has become a distant second to Nvidia.
“We will focus our AI efforts on developing a cohesive silicon, system and software stack strategy. In the past, we have approached AI with a traditional, silicon- and training-centric mindset. This needs to change – and we have already started incubating new capabilities while attracting new talent,” Tan wrote in his statement to investors.
Intel expects higher revenue in the third quarter, between $12.6 and $13.6 billion, but also heavier losses per share.
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