Intel Begins Massive Restructuring Amid $2.9B Quarterly Loss

Intel is undergoing significant changes, including the elimination of approximately 24,000 jobs and the shutdown of projects in multiple countries. According to the company's latest earnings report for Q2, Intel plans to end 2025 with around 75,000 "core employees." At the end of last year, the company employed 99,500 core staff out of a total of nearly 110,000.

The company had previously announced upcoming layoffs in April. Since then, thousands have already been let go. CEO Lip-Bu Tan admitted that Intel overinvested in factories without sufficient demand. He emphasized a new strategy focused on delivering exactly what customers need, when they need it.

Cancelled Projects and Site Closures

Intel is no longer moving forward with massive facility plans in Germany and Poland. These were expected to create 3,000 and 2,000 jobs, respectively. The company is also essentially ending operations in Costa Rica, where over 3,400 employees were based. Assembly and testing work will be relocated to larger facilities in Vietnam from this point forward.

In the US, Intel is slowing construction in Ohio to better align with market conditions. Despite the slowdown, investments will continue.

Intel reported a loss of $2.9 billion for the quarter, with revenue remaining flat at $12.9 billion. The company is currently cutting $17 billion in costs as part of a broader restructuring.

Looking Ahead

Intel plans to launch its Panther Lake processor later this year. More models will follow in 2026. Its next-gen Nova Lake chips are expected by the end of 2026. Meanwhile, production of Lunar Lake processors is likely to increase in the coming quarter.