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- By Prateek Levi
- Fri, 25 Jul 2025 12:57 PM (IST)
- Source:JND
Intel has announced plans to cut more than 25,000 jobs by the end of 2025 as part of a sweeping global restructuring. The move, revealed in its Q2 2025 earnings report, is aimed at streamlining operations and addressing persistent underperformance. The layoffs will bring the company’s global workforce down from approximately 108,900 to about 75,000 employees.
The reductions will come through a mix of direct layoffs, employee attrition, and internal reorganisation. This follows a sharp workforce decline earlier this year, when Intel let go of around 15,000 employees—roughly 15% of its staff—since April. A similar scale of job cuts was carried out in 2024 as well.
Despite the cost-cutting push, Intel reported a net loss of $2.9 billion for the second quarter of 2025, largely due to expenses tied to restructuring. Revenue held steady at $12.9 billion, slightly above what analysts had expected before. For the September quarter, the company projects revenue between $12.6 billion and $13.6 billion, which is in line with average Wall Street estimates.
As part of the restructuring, Intel is putting several of its international expansion plans on hold. Construction of new manufacturing facilities in Germany and Poland has been delayed for the foreseeable future. The company has also paused work on its $28 billion chip plant in Ohio and plans to consolidate its Costa Rica operations, moving product testing and related activities to Vietnam and Malaysia instead. These steps are part of a broader cost-reduction strategy that aims to lower annual operating expenses to $16 billion by 2026.
Once the dominant force in semiconductors, Intel has struggled in recent years to keep up with competitors amid rapid advances in artificial intelligence, smartphone chipsets, and manufacturing technologies. Setbacks in its chip fabrication plans have further hindered progress.
Intel leadership has indicated that these changes are not only financial but also organisational. The company is working toward a major internal shift in how it operates, while investors and industry watchers closely monitor whether the restructuring will help the company recover lost ground—especially with its next-generation semiconductor roadmap.