Intel layoffs are dominating the tech industry spotlight following the chipmaker’s announcement that it plans to shed 24,000 jobs or close to a third of its current workforce by 2025. As part of its broader cost-cutting and restructuring effort, Intel is also expected to abandon a handful of offside international projects. This is a significant shift as it comes shortly after Intel’s Q2 2025 earnings release, which outlined a slimmer, sleeker approach for the company in the coming years.
The Intel layoffs will result in the downsizing of the company from 108,900 to about 75,000 workers. Of the affected workers, about 24,000 are core employees. The Intel layoffs are in support of a plan to reduce the company’s Non-GAAP operating expenses to the tune of $17 billion by the close of 2025 and $16 billion by the end of 2026.
Intel CEO Lip-Bu Tan, the man who has taken over for Pat Gelsinger (who left for VMware) recently, stressed that Intel layoffs and the corresponding strategic cuts will be a crucial efficiency-led exercise. “Our operational performance reflects the early progress we’ve made to strengthen execution and increase efficiency,” Tan said.
The Intel job losses are part of a wider move to axe a number of international projects. And its plans to expand in Germany and Poland have been put on hold. In addition, Costa Rican assembly and testing is to be transferred to Intel’s Malaysian and Vietnamese facilities. Intel job cuts and project closures indicate a radical reshaping to help streamline and focus operations.
The tech giant’s lackluster performance in the previous fiscal year also compounded the urgency of the Intel layoffs. Although re-engineering of such magnitude will likely hurt thousands of workers, Intel argues it is necessary for long term profits. Intel’s layoffs are the latest stage in a sweeping transformation by the company, as it seeks to regain competitive ground in the semiconductor industry.
Recent Intel layoffs have already started to shape the company’s roadmap. Nonstrategic projects are being revisited. The company is seeking to double down on stronger return-on-investment areas and pull back on money-losing endeavors. The Intel job cuts and strategic pivot are among a wave of moves by big tech companies looking to rebound from a rough financial patch through drastic overhauls.
Combining Intel layoffs with the consolidation of its international operations and reductions in other expenses, the chipmaker wants to position itself better for the long term. The move is clear about focusing on the efficiency of the business, cutting out duplication, and keeping capital for essential innovation.
Intel layoffs: A turning point for the company. And both investors and analysts will be watching closely how those cost-cutting measures are put into effect throughout Intel’s global operations. In the face of a rapidly shifting global tech landscape, Intel layoffs could provide as a template for other large companies that are experiencing similar pressures on their revenue.
With the industry in the midst of significant macroeconomic headwinds, Intel layoffs show how even the most well-established leaders must change with the times — or be left behind. Intel layoffs are more than just a reaction to earnings — they’re part of a bigger long-term change in how the company is going to do business.
