In April, Intel hinted at significant layoffs but avoided openly confirming them. Spokesperson Sophie Metzger stated, “We have not set any headcount reduction target,” yet thousands of staff have been let go since then. In their recent Q2 2025 earnings report, Intel revealed plans to drastically downsize, reducing its workforce by around 24,000 positions—nearly 25% of its total. This means Intel will have about 75,000 “core employees” by the end of 2025, down from about 99,500 at the close of 2024.
This downsizing comes as Intel recognizes it over-invested in new factories before ensuring there was enough demand for its products. CEO Pat Gelsinger noted that the company’s manufacturing capacity has been too scattered. He insists that Intel will now only build what customers need.
The company scrapped plans for large investments in Germany and Poland, which included mega factories that would have employed thousands. They also announced the end of assembly operations in Costa Rica, consolidating efforts into larger sites in Vietnam.
Intel has maintained a presence in Poland since 1993, and while new factories are canceled, existing research and development facilities will stay open. In Costa Rica, even with layoffs, over 2,000 employees are expected to stay on in engineering and corporate roles.
Further cuts are on the horizon in Ohio, where construction plans will slow to match market demand. Currently, Intel claims to have completed most of the planned layoffs, targeting a 15% reduction in its core workforce.
Financially, Intel reported a $2.9 billion loss this quarter, alongside $12.9 billion in revenue. Their investment in restructuring has cost them about $1.9 billion. Despite these losses, their data center business—their only bright spot—has seen a slight 4% increase year-over-year.
Intel aims to reduce expenses by $17 billion throughout 2025 and is pushing ahead with upcoming chip releases. Key products include the Panther Lake laptop processors expected to ship soon, and the Nova Lake chips slated for late 2026.
Meanwhile, there’s been a growing trend on social media focused on layoffs in the tech industry. Many users have expressed concern about the job market and whether more companies will follow suit.
In summary, Intel’s ambitious plans have taken a significant hit, showing the impact of market dynamics on corporate strategies. The company’s shift toward a more cautious and customer-driven approach may reshape its future in the highly competitive tech landscape. For further insights on corporate layoffs and market trends, check out this recent report by the Pew Research Center.
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