Intel has confirmed that it has mostly completed the previously announced reduction of 15% of its workforce, one of the first major strategic moves under new CEO Lip-Bu Tan, who took the reins in March. The company shared the update during its latest earnings call, where Tan expressed cautious optimism about Intel’s path forward. He acknowledged that while the turnaround would take time, there are clear opportunities to strengthen Intel’s competitiveness, boost profitability, and deliver long-term value to shareholders.
Intel reveals it will shed 24,000 employees this year and retreat in Germany, Poland, and Costa Rica$INTC pic.twitter.com/tHPHjftT6Y
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According to The Verge, Intel has already completed the majority of its planned headcount reductions, which primarily affected its core workforce. As of the end of 2024, Intel had 109,800 employees, with 99,500 classified as core staff. The company now plans to shrink that number significantly, targeting around 75,000 core employees by the end of 2025—a reduction of over 24,000 roles from its earlier levels.
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Intel’s Chief Financial Officer Dave Zinser added that more reductions are expected through natural attrition and restructuring, including the ongoing reorganization of business units. The downsizing is part of a broader strategy aimed at streamlining operations and resetting the company’s financial and operational foundation in the face of stiff competition in the semiconductor market.
Intel to Lay Off 15% of Workers, Cancel Billions in Projects in Bid for Rebound https://t.co/B0LqLeJppG pic.twitter.com/Gj3bqZwk9A
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Intel has announced a series of cutbacks as part of its broader cost-reduction strategy, including pulling out of planned projects in Germany and Poland and shutting down its assembly and testing operations in Costa Rica. The company also revealed that it will delay the completion of its $28 billion chip manufacturing facility in Ohio. Originally slated for completion by the end of 2025, the plant is now expected to be finished closer to the end of 2030, with Intel citing the need to “ensure that spending is aligned with demand.”
Addressing the delay and shift in strategy during the earnings call, CEO Lip-Bu Tan criticized the company’s previous approach of building capacity ahead of demand. He said past investments left Intel with “needlessly fragmented” factories. “I do not subscribe to the belief that if you build it, they will come,” Tan asserted. “Under my leadership, we will build what customers need, when they need it, and earn their trust.”
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