In an effort to restructure and relaunch its competitiveness, Intel confirmed that it has largely completed its plan to lay off 15% of its workforce. The announcement was made as part of the presentation of financial results for the second quarter of 2025, marking the first major decision of the new leadership under CEO Lip-Bu Tan.
Intel says the cuts are aimed at creating a more agile and efficient organization, capable of adapting more quickly to new market demands.
Redesign under pressure: Thousands of layoffs and project cancellations in Europe
Intel announced a cost-cutting, which includes thousands of layoffs. The company said it had 108,900 employees at the end of 2024 (in its core business and subsidiaries) but planned to end 2025 with 75,000 employees in its core business—not including subsidiaries—as a result of “workforce reductions and exits.”
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Additionally, according to official notices in Oregon, approximately 2,400 workers are planned to be laid off in that state alone.
Part of the strategy includes canceling or suspending international investments: the company is abandoning projects in Germany and Poland, while slowing construction of its state-of-the-art chip manufacturing in Ohio. According to Intel, this is done to “align spending with market demand.”
Positive signs from investors
Despite the layoff announcements, Intel shares rose 3% after reporting quarterly results. Interestingly, this was despite a net loss of $2.9 billion , nearly double the same quarter last year.
However, Intel stock has risen about 12% since the beginning of the year, indicating growing investor confidence in Tan's strategy and the company's new direction.
See also: Bumble: Layoffs are coming that will affect 240 employees
"It will take time, but we see clear opportunities to strengthen our competitive position, improve our profitability and create long-term value for our shareholders," Tan said.
Back in Nvidia 's Shadow – The Battle for Artificial Intelligence
Intel is struggling to regain lost ground in a rapidly changing technology world, in which traditional players cannot afford to miss critical opportunities.
In recent years, Intel has lagged behind in two key developments:
- The revolution mobile device, which was dominated by companies like ARM and Qualcomm.
- The explosive rise of artificial intelligence, led by Nvidia, whose market capitalization exceeded $4 trillion – becoming the most valuable listed company in the world, albeit temporarily.
Intel 's lagging behind in new technologies and AI chips has created pressure for radical changes, with Lip-Bu Tan being called upon to manage the most critical period of restructuring in the company's history .
Another tech company in a wave of layoffs
Intel isn't the only one to make massive layoffs this year. The tech industry is in a prolonged phase of cost rationalization, with other major companies following similar paths:
- Microsoft laid off about 9,000 employees in early July 2025
- Meta reduced its staff by 5% in January
These figures reflect a broader shift in the industry from overgrowth to efficiency, as companies now focus on technological and financial sustainability.
See also: Amazon: New layoffs in book departments
Can Intel return to the spotlight?
Intel's restructuring looks like a last-ditch attempt at a strategic reboot. Cutting 15,000 jobs and repurposing investment resources could give the company the space to rebuild its technological dominance — especially in the field of artificial intelligence.
However, Intel must prove that it is not just an industrial company of the past, but a technology player capable of adapting to the needs of the future.
The battle for AI dominance is still in its early stages. The question is: will Intel be in it or will it be a mere spectator?
source: edition.cnn.com
