Intel May Exit Advanced Manufacturing in Restructuring

Intel, under new CEO Lip-Bu Tan, is planning to reduce its workforce from approximately 108,900 to 75,000 by the end of 2025—a cut of about 31%—through layoffs and attrition as part of a major restructuring. The company is canceling chip factory projects in Germany and Poland, consolidating operations from Costa Rica to Vietnam and Malaysia, and slowing construction of its Ohio chip plant. Intel reported a $2.9 billion net loss for Q2 2025, despite slightly exceeding analyst revenue expectations with $12.9 billion, and has seen some stock recovery this year. Facing persistent challenges in the competitive AI chip market, Intel aims to lower annual operating expenses to $17 billion by the end of 2025. The company is also considering exiting advanced manufacturing if it cannot secure major external clients within four years. Analysts warn that the extensive cuts could threaten Intel’s long-term innovation and core capabilities.