Tech layoffs: Intel to cut down 30,000 jobs by end of 2025, axes expansion plans

In a significant move to reshape its future, Intel has announced plans to slash its workforce by nearly one-third by the end of 2025. This decision is part of a comprehensive restructuring strategy aimed at reducing expenses and restoring the company’s competitive standing in the semiconductor industry. The update was revealed alongside Intel's second-quarter earnings report, outlining a plan that had been hinted at earlier this year. By the end of 2025, the company anticipates having a core workforce of 75,000 employees, a considerable decrease from 108,900 at the close of 2024. Notably, this count excludes personnel from subsidiaries like Mobileye, its autonomous driving division. The layoffs, which Intel describes as “mostly complete,” will occur through a combination of job cuts and voluntary departures, all aimed at creating a more streamlined and agile organization. This decision marks a pivotal moment for the company under the leadership of new CEO Lip-Bu Tan, who took over from Pat Gelsinger in March. Tan has been vocal about his vision for transforming Intel, stating, “It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.” As part of its cost-saving measures, Intel has also halted expansion plans in Germany and Poland, opting instead to consolidate its operations in Costa Rica with facilities in Vietnam and Malaysia. Furthermore, the company will reduce the pace of its construction projects in Ohio to align with current market needs. Intel’s restructuring comes at a crucial time as it seeks to regain its foothold in a rapidly evolving semiconductor landscape. The company has faced increasing scrutiny for its inability to fully leverage the booming sectors of mobile computing and artificial intelligence, areas where competitors like Nvidia have outpaced it. Nvidia recently made headlines by briefly achieving a market valuation exceeding $4 trillion. This latest announcement by Intel follows a broader trend of job cuts across the tech industry, with Microsoft and Meta also implementing significant layoffs in recent months, signaling ongoing challenges within the sector.