Layoff News 2025: Intel to Cut 24,000 Jobs In 2025, Halt Work On Big Factory Projects

The American semiconductor manufacturing company Intel is making certain big and difficult changes and has recently announced that it will let go of nearly 24,000 employees this year, that is approximately one out of four people who have worked there at the end of 2024.

This news arrived during the company's earnings report for the second quarter of 2025.

What Will Intel Focus On?

Additionally, Intel is going to now focus on becoming smaller and more efficient, as per a report by The Verge. The company is also cancelling major projects in Germany and Poland, as part of this move, where it had previously planned to build huge factories which could have created thousands of jobs.

The firm is also shutting its operations in Costa Rica and moving to Vietnam. As many as 2,000 employees in Costa Rica will be affected, though many will stay on in other roles.

What Is The Reason Behind These Changes?

Intel's new CEO, Lip-Bu Tan, is the man behind these decisions as he took over during a challenging time for the company, which has been struggling to keep up with competitors, especially in the fast-growing world of artificial intelligence.

The new CEO has also admitted to be struggling with the amount of money that has been spent on building new factories before making sure there was enough demand for the chips they would produce.

During a call with investors Tan said that he does not believe in building things and hoping customers will show up, adding, "we will now only build what people actually need."

This move is costing the company a lot of money, which is approximately $2 billion to handle the layoffs and restructuring. Intel is still losing money and reported a loss of $2.9 billion this quarter, even though it made $12.9 billion in revenue.

Some of Intel's units are doing well like its data centre unit, which powers servers and cloud services, is slightly up but the chips made by the firm are not selling as well as before.

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