Intel announces major workforce cuts amid restructuring plans

In the United States, Intel Corporation is undergoing significant changes as it prepares to reduce its global workforce by more than 24,000 employees by the end of 2025. This reduction, announced recently, constitutes approximately 22 percent of its workforce compared to mid-2025 levels, which stood at around 96,000 employees by the end of June. The company has begun its layoffs earlier this summer, particularly affecting thousands of workers in Oregon, which is Intel's largest site, where local employment has reached its lowest levels in a decade. These workforce reductions are part of a larger strategy driven by Intel's CEO Lip-Bu Tan to streamline operations and boost efficiency across the organization. In a communication to employees, Tan expressed the difficulty of the situation, explaining that these tough decisions are crucial for the company's future. Intel has identified a need to restructure its operations not only by cutting jobs but also by significantly scaling back its manufacturing aspirations. Plans for major investments in factories in Germany and Poland have been scrapped, alongside the shutdown of an assembly site in Costa Rica. Instead, manufacturing is being shifted to larger facilities in Vietnam and Malaysia. Intel's operations have faced significant challenges, with the company's recent financial results indicating major losses totaling $2.9 billion, compounded by restructuring charges nearing $2 billion. The situation reflects the drastic need for a reevaluation of Intel's investments and manufacturing capacities, with the CEO admitting that prior expansions were excessive and misaligned with market demand. Furthermore, morale among Intel employees appears to be declining as a result of repeated layoffs and a new mandate requiring most staff to return to the office at least four days a week. Looking ahead, the company's future in advanced manufacturing is uncertain, particularly as it faces potential roadblocks in launching its next-generation chipset manufacturing process, known as Intel 14A, planned for the late 2020s. A regulatory filing has indicated that if the company is unable to attract significant external foundry customers for this process, it may reconsider pursuing next-generation technologies altogether. As the restructuring progresses, the focus on efficiency and accountability will be crucial for Intel to navigate its current challenges and restore trust among its workforce, amidst growing uncertainty about the company's direction.