Intel Lays Off 15% in Major Restructuring

 

Intel has announced the completion of its previously disclosed plan to reduce its workforce by 15%, a move intended to support the tech giant’s ambitious restructuring efforts. The layoffs, quietly detailed in the company’s second-quarter earnings report, are among the first major steps taken by newly appointed CEO Lip-Bu Tan, who assumed leadership in March.

Despite reporting a significant quarterly net loss of $2.9 billion—nearly double from the same period last year—Intel shares jumped 3% in after-hours trading, reflecting cautious optimism from investors. The company’s stock has climbed nearly 12% in 2025 so far, indicating that while challenges remain, confidence in Tan’s leadership is growing.

Reshaping for Agility and Profitability

Intel stated that the job cuts are designed to streamline the organization, making it “faster-moving, flatter, and more agile.” At the close of 2024, the company had approximately 108,900 employees, including those from subsidiaries like Mobileye. Intel aims to end 2025 with just 75,000 employees within its core division, achieving this through layoffs and natural attrition.

The layoffs are not the only cost-cutting measure in play. Intel has also canceled expansion projects in Germany and Poland and decided to decelerate construction on its semiconductor facilities in Ohio. These decisions align with the company’s goal to pace capital expenditure in line with market demand, as it focuses on optimizing operations and positioning itself competitively.

Battling to Reclaim Market Leadership

Intel’s recent years have been marked by missed opportunities and growing pressure from competitors. The company was slow to pivot toward the mobile and AI-driven markets—an oversight that allowed rivals like Nvidia to surge ahead. Notably, Nvidia recently reached a market cap of $4 trillion, a historic milestone.

The layoffs are part of Intel’s broader $10 billion cost-cutting initiative, announced last summer. That plan includes eliminating 15,000 roles and reassessing Intel’s role in the rapidly evolving semiconductor landscape, especially in artificial intelligence.

Other major tech firms have also undergone significant workforce reductions in 2025. Microsoft let go of around 9,000 employees in July, while Meta downsized its team by approximately 5% earlier in the year. These widespread layoffs reflect an industry-wide recalibration amid shifting technological priorities and economic pressures.

CEO Lip-Bu Tan emphasized in the earnings release that while Intel’s transformation will take time, the company sees “clear opportunities” to strengthen its competitive position and deliver long-term shareholder value. Though the path to recovery may be complex, Intel’s strategic realignment under new leadership suggests a renewed focus on innovation, efficiency, and future readiness.