Intel targets 24,000 job cuts as it reshapes factories and operations

Workforce reduction plan

Intel plans to cut 24,000 employees during 2025 as part of a broader restructuring that will reduce its core workforce to about 75,000 people by year end. The company had 99,500 core employees within a total workforce of 109,800 at the end of 2024.

The reported 24,000 reduction is described as an estimate based on the planned year-end core workforce, rather than a separate count of completed cuts. Intel said it had already completed the majority of headcount actions announced in the prior quarter, which were intended to lower the core workforce by approximately 15 percent.

Sources in the packet describe the scale differently. One characterises the planned reduction as approximately 22% of Intel's total end-of-2024 workforce, while another describes the change in core employees as roughly one-quarter. A separate account refers to 25,000 role reductions after a 15,000 cut in 2024. The sources do not reconcile those figures.

Factory plans and operations

Intel is also pulling back from planned manufacturing investments. It will no longer proceed with planned projects in Germany and Poland. The Germany project had been expected to employ 3,000 workers, while the Poland assembly and test facility had been expected to employ 2,000 workers.

In Costa Rica, Intel plans to consolidate assembly and test operations into larger sites in Vietnam. The company employs more than 3,400 people in Costa Rica, and an Intel spokesperson said more than 2,000 employees there should remain in engineering and corporate functions.

The company is slowing construction in Ohio to align spending with market demand, while continuing investment and construction at the site.

Demand, restructuring and AI context

Intel attributed the restructuring to having invested too heavily in new factories before securing enough demand. Its chief executive said the company needed to reduce fragmentation across its manufacturing network and align capacity growth with demonstrated customer demand and business milestones.

The cuts come as Intel seeks to flatten its organisation after years of difficulties and an underwhelming response to the AI boom. That AI context is distinct from the operational explanation Intel gave for the restructuring: the company cited factory investment and insufficient demand, not AI automation, as the stated reason for the planned workforce reduction.

Earlier moves included the closure of Intel's automotive chipmaking business, plans to cut up to 20 percent of silicon factory workers, and the spinout of its RealSense computer vision business.

Intel reported a $2.9 billion quarterly loss on $12.9 billion in revenue. Its data centre business rose 4 percent year over year to $3.9 billion, while PC chip revenue fell 3 percent to $7.9 billion. Its foundry business increased 3 percent to $4.4 billion.

The company said it was on track to reduce expenses by $17 billion over the full year. It also said the first Panther Lake processor SKU remained on track to begin shipping later in 2025, with additional SKUs expected in the first half of 2026, while Nova Lake remained scheduled for the end of 2026.

Sources

• Intel q2 2025 leave germany poland costa rica – Breaking News & Latest Updates 2026
• Inside Intel: employees say culture eroded as firm missed the AI boom – DailySynapse