Intel Plans 31% Workforce Cut, Project Cancellations Amid Restructuring

Intel Corporation is undergoing a major restructuring under CEO Lip-Bu Tan to regain competitiveness in the AI-driven semiconductor market, announcing plans to reduce its workforce by approximately 31% to 75,000 employees by the end of 2025 through layoffs and attrition. This restructuring includes cutting 15% to 20% of jobs in its Foundry division, scrapping expansion projects in Germany and Poland, and relocating some assembly operations from Costa Rica to Vietnam and Malaysia, while delaying construction of its semiconductor facility in Ohio. Despite beating revenue expectations with $12.86 billion in Q2 2025, Intel reported an adjusted loss per share that fell short of forecasts, highlighting ongoing financial struggles amid rising competition from Nvidia and TSMC. Tan emphasized that these difficult decisions are necessary to streamline operations, improve efficiency, and increase accountability, with previous layoffs already reducing management layers by about 50%. The company is also reinforcing hybrid work policies and aims to transform its organizational culture to drive effectiveness. These moves reflect a broader effort to cut costs and refocus on core strengths as Intel navigates a rapidly evolving industry landscape.