Intel Slashes 24,000 Jobs and Kills Offside Projects in Massive Shake-Up

Intel, a well-known chipmaker, is undergoing a significant restructuring plan. The tech firm had previously announced its intent to lay off some employees to reduce its operating expenses. Now, as it releases its Q2 2025 earnings report, the CEO provides more details about the plan for the layoffs and cutting other “unimportant” business expenses.

Intel CEO details the plan to lay off a third of its workforce

Intel has released its second-quarter earnings reports. In the report, the business clarifies that it wants to have around 75,000 employees by the end of 2025. The firm had a total of 108,900 employees in the last financial year, out of which 99,000 were ‘core employees’. Now, as Intel announces its plan to lay off about a third of its current workforce, a near total of 24,000 core employees are going to lose their jobs.

The CEO adds that this layoff is part of Intel’s plan to bring down the non-GAAP (Generally Accepted Accounting Principles) operational expenses to $17 billion by the end of this year. It further plans to bring down the operational expense to $16 billion by the end of 2026.

Other projects are going to be abandoned as well

Intel’s performance was lackluster in the last financial year. This led the company to appoint a new CEO to drive a turnaround. Lip-Bu Tan was given the seat of CEO, replacing Pat Gelsinger. The official adds in the report that “Our operating performance demonstrates the initial progress we are making to improve our execution and drive greater efficiency“.

To further boost the expense cut-off process, Intel is going to abandon some of its previously announced plans. The new projects of the business, which were supposed to take place in Germany and Poland, have been scrapped. The Costa Rican assembly operations and testing unit will be consolidated into the Malaysian and Vietnamese units.