In April, Intel tried to announce layoffs with out asserting layoffs. “We’ve not set any headcount discount goal,” Intel spokesperson Sophie Metzger informed The Verge. However the firm has laid off 1000’s of staff since — and at this time, within the firm’s Q2 2025 earnings, it has revealed that Intel will dramatically shrink because of these layoffs. Intel says it should retreat from deliberate tasks in Germany and Poland, finish its meeting and check operations in Costa Rica, and end 2025 with simply round 75,000 “core staff” in whole.
Intel employed 109,800 individuals on the finish of 2024, of which 99,500 have been “core staff,” so the corporate is pushing out round 24,000 individuals this yr — shrinking Intel by roughly one-quarter. (It has additionally divested different companies, shrinking the bigger group as effectively.)
As we speak, on the corporate’s earnings name, Intel’s CEO says that Intel had overinvested in new factories earlier than it had secured sufficient demand, that its factories had change into “needlessly fragmented,” and that it must develop its capability “in lock step” with attaining precise milestones.
“I don’t subscribe to the idea that in case you construct it, they are going to come. Underneath my management, we’ll construct what clients want once they want it, and earn their belief,” says Tan.
Now, in Germany and Poland, the place Intel was planning to spend tens of billions of {dollars} respectively on “mega-fabs” that may make use of 3,000 staff, and on an meeting and check facility that may make use of 2,000 staff, the corporate will “not transfer ahead with deliberate tasks” and is outwardly axing them fully.
Intel has had a presence in Poland since 1993, nevertheless, and the corporate did not say its R&D amenities there are closing. (Intel had beforehand pressed pause on the brand new Germany and Poland tasks “by roughly two years” again in 2024.)
In Costa Rica, the place Intel employs over 3,400 individuals, the corporate will “consolidate its meeting and check operations in Costa Rica into its bigger websites in Vietnam.” Metzger tells The Verge that over 2,000 Costa Rica staff ought to stay to work in engineering and company, although.
The corporate can be chopping again in Ohio: “Intel will additional gradual the tempo of building in Ohio to make sure spending is aligned with market demand.” Intel CFO David Zinsner says Intel will proceed to make investments there, although, and building will proceed.
It’s not clear if the layoffs will gradual now that we’re over midway by means of the yr, however Intel states at this time that it has already “accomplished nearly all of the deliberate headcount actions it introduced final quarter to scale back its core workforce by roughly 15 %.”
Thus far, partially due to the $1.9 billion that Intel is incurring to do these layoffs and this restructuring, Intel continues to be dropping cash this quarter. It’s reporting a $2.9 billion loss on $12.9 billion in quarterly income (which is itself flat yr over yr). Amid the continued AI growth, Intel’s information heart enterprise is just up 4 % yr over yr to $3.9 billion, whereas its PC chips are down 3 % to $7.9 billion. Intel’s foundry enterprise, the place it does chipmaking for different clients as effectively, is up 3 % to $4.4 billion.
The corporate says it’s on monitor to shrink its bills by $17 billion over the complete yr, and that a minimum of one in all its subsequent flagship laptop computer chips is on monitor, too: “The primary Panther Lake processor SKU stays on monitor to start delivery later this yr, with extra SKUs coming within the first half of 2026.”
Intel’s follow-up, Nova Lake, continues to be on monitor for the top of 2026, based on Tan, and he says he has “taken steps to appropriate previous errors concerning multi-threading capabilities” within the firm’s Efficiency cores there. What’s extra, Tan says he’s personally taking over accountability for every new chip design with a brand new coverage that he says is already in impact: “each main chip design must be personally reviewed and accepted by me earlier than tape out.”
In the meantime, Intel says it’s additionally ramping its standard however beforehand costly Lunar Lake chips this subsequent quarter.
Tan says he can even announce new management for Intel’s information heart enterprise subsequent quarter, and can share extra on its technique for a full-stack AI answer “within the coming months.”
Correction, July twenty fourth: We initially incorrectly calculated that Intel would shed round 33,000 staff, however the precise whole ought to be nearer to 24,000. (Intel acknowledged it will finish the yr with 75,000 core staff, however the 108,900 quantity we initially in comparison with was final yr’s whole headcount together with different associated companies, not Intel core headcount, which was 99,500.)
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