Intel Plans 24,000 Layoffs, Cancels Germany Poland Plants

Intel CEO Lip-Bu Tan has announced significant restructuring measures including a workforce reduction of about 15%, equating to approximately 24,000 layoffs, to reduce costs and improve efficiency. The company plans to end 2025 with around 75,000 core employees, down from nearly 100,000 last year, and has already cut management layers by half. Tan criticized previous investments in new manufacturing plants in Germany, Poland, and Costa Rica as excessive and unsupported by demand, leading to Intel scrapping those projects and slowing construction in Ohio. These moves mark a shift from the expansionist strategy of Tan's predecessor, Pat Gelsinger, who aimed to transform Intel into a major chip foundry competitor. Despite reporting a Q2 revenue of $12.9 billion, Intel posted a $2.9 billion loss and is focusing on streamlining operations, emphasizing core products and AI-related offerings to regain market share amid stiff competition from Nvidia and AMD. Tan's approach reflects a strategic pivot toward operational efficiency and a more cautious capital expenditure policy to stabilize the company’s market position.