Intel is undergoing one of the largest restructurings in its corporate history as it prepares to cut nearly 24,000 jobs worldwide by the end of 2025. The US-based chip giant confirmed the move as part of a broader effort to reduce costs, following years of inconsistent performance and heavy investment in non-core sectors. This strategic shift is being led by Intel’s new CEO, Lip-Bu Tan, who is known for his aggressive cost-cutting and investment realignment tactics.
Intel had approximately 109,000 global employees at the end of 2024. This number will shrink dramatically to about 75,000 “core employees” by late 2025 representing a nearly 25% reduction in its workforce. The restructuring is already in motion, with major changes affecting Intel’s operations across the US, Europe, and Central America.
One of the most significant outcomes of this shift is the cancellation of multi-billion-dollar chip manufacturing plants that were previously planned for Germany and Poland. These projects, which had initially been paused, are now permanently shelved, costing the region thousands of potential jobs. However, Intel has confirmed that its R&D facilities in Poland will continue to operate for the time being.
Another region taking a hit is Costa Rica. Once considered a key location for Intel’s assembly and testing operations, the company is now relocating those functions to Vietnam. Despite this move, over 2,000 employees are expected to remain in Costa Rica, focusing on engineering, corporate, and support roles.
In the United States, construction activity on a high-profile Intel site in Ohio has been decelerated. The company cites fluctuating market demand as the reason, adding that while investment will continue in the area, it will follow a more measured timeline. This slowdown mirrors Intel’s overall cautious approach as it reassesses global operations.
Further trimming down, Intel has exited several non-essential business sectors in recent months. These include the automotive chip division and its RealSense unit, which specialized in computer vision technology. These closures are aligned with Intel’s plan to concentrate on high-performing and future-ready segments like AI chips and foundry services.
Despite steady overall revenue of $12.9 billion in the second quarter of 2025, Intel reported a net loss of $2.9 billion. A substantial portion of this loss approximately $1.9 billion stemmed from restructuring expenses, including severance and operational changes. While the company’s PC chip sales have seen a minor decline, its data center business recorded a modest 4% growth. Meanwhile, its foundry segment, which manufactures chips for other companies, registered a 3% uptick.
Intel’s massive restructuring reflects a pivotal moment for the tech behemoth as it seeks to reinvent itself amid growing global competition, particularly in the AI and semiconductor space. With cost-cutting, operational shifts, and strategic exits, the company is clearly aiming for a leaner and more focused future.
