Intel Cuts 15% of Workforce in Major Restructuring Under New CEO

Intel has announced it has mostly completed its plan to cut 15% of its workforce, a move first revealed last quarter as part of its efforts to rebound from recent struggles in the chipmaking industry. The layoffs were detailed in the company’s second-quarter earnings report released Thursday.

The restructuring marks one of the first major actions taken by new CEO Lip-Bu Tan, who stepped into the role in March. “It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value,” Tan said.

Despite reporting a net loss of $2.9 billion for the quarter—almost double that of the same period last year—Intel’s shares rose 3% in after-hours trading, with the stock up nearly 12% year-to-date.

The company is aiming to become more agile, reducing its core Intel workforce to 75,000 by the end of 2025 through layoffs and attrition. Intel previously reported having nearly 109,000 employees at the end of 2024, including those at its subsidiaries like Mobileye.

As part of its cost-cutting strategy, Intel is also scrapping planned projects in Germany and Poland and will slow construction of its Ohio chip plants to better match market demand. Earlier this month, Intel filed layoff notices in Oregon for nearly 2,400 workers, though it’s unclear if they are included in the broader 15% reduction.

Intel’s recent years have been marked by missed opportunities in mobile and AI technologies, allowing competitors like Nvidia to dominate. The restructuring is part of a $10 billion cost-cutting effort as Intel attempts to reestablish its position in the evolving tech landscape.

Credit: CNN Newsource
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