Intel set to cut thousands more jobs as it cancels several fab projects

Intel plans to cut even more workers by the end of the year
Its most recent quarterly revenue was better than anticipated
Other cost-cutting measures are being used

Intel is reportedly planning to reduce its workforce by around 15% by the end of 2025, bringing total headcount to the 75,000 mark.

Thousands of Intel workers have already lost their jobs in 2025, including a staggering 22,000 in April and a further 5,000 in July.

Intel has described the changes as cost-cutting efforts, through which it hopes to reduce middle management layers that cause operational efficiencies.`

Intel continues to cut jobs

Despite the economic challenges it faces, Intel managed to post a flat year-over-year quarterly revenue, at $12.9 billion, however the period saw the company rack up an estimated $1.9 billion in restructuring charges.

Speaking about Intel’s second quarter, new CEO Lip-Bu Tan praised the company’s performance: “We delivered revenue above the high end of our guidance, reflecting solid demand and execution across the business.”

“The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future,” CFO David Zinsner added.

Besides tackling inefficiencies by removing thousands of workers, Tan is also an office-working advocate, citing enhanced productivity as a key reason behind the company’s recently adjusted return-to-office policy which he says is “on track” for a September 2025 implementation.

In his letter to company workers, Tan explained Intel had previously invested “too much, too soon” in its foundry businesses, and that some changes would be coming that way.

Previously planned projects in Germany and Poland have been pulled, while assembly and test operations in Costa Rica will be consolidated to Vietnam and Malaysia.

Tan stressed that Intel remains committed to its x86 chips, like Panther Lake and Nova Lake consumer and enterprise models and the data centre-destined Granite Rapids.

“We must continue acting with urgency, discipline and focus in everything we do,” he concluded.