Intel Plans Major Workforce Reduction Amid Restructuring Efforts
Intel has revealed more details about its upcoming job cuts and business changes while reporting its second-quarter earnings. Earlier reports in April suggested the company could slash around 20 percent of its workforce as part of a restructuring plan. Now, Intel has confirmed it expects to reduce its core workforce to 75,000 employees by the end of 2025, down from 99,500 at the start of this year.
The scale of the downsizing becomes even more striking when looking at the company’s broader workforce reductions. Last year, Intel employed 116,500 people globally, excluding workers at its subsidiaries. That number has dropped sharply since then. As of June 28, the company had 96,400 employees, meaning it plans to cut over 20,000 jobs in the second half of the year.
These layoffs are part of Intel’s strategy to reduce its non-GAAP operating expenses to $17 billion this year and further down to $16 billion by the end of 2026. The cost-cutting measures are also leading the company to scale back on previously announced expansions. Intel will halt new projects in Germany and Poland, consolidate its Costa Rican testing and assembly operations into existing facilities in Vietnam and Malaysia, and slow the pace of construction at its Ohio site in the U.S.
Lip-Bu Tan, who became Intel’s CEO in March, has been open about his plans to streamline the company since taking over. He emphasized that these changes are necessary to improve efficiency and execution. Tan was brought in to replace Pat Gelsinger as part of an effort to reverse Intel’s financial struggles after years of declining performance.
The latest updates clarify the extent of Intel’s workforce reductions, with employment figures simplified to focus on core operations. The company’s aggressive restructuring reflects its push to stabilize finances and refocus its business strategy in a competitive semiconductor market.