Today, by presenting its results from the second quarter of 2025, Intel revealed that it will shrink drastically as a result of 24,000 employees to be fired. In addition, the company will abandon projects in Germany and Poland, ending its assembly and testing operations in Costa Rica.
Last week, the information was that the layoffs would be up to 5 times larger than expected. However, the shock is still heavy for many.
At the end of 2025, the company should have only about 75,000 “main employees” in total.
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Perspective
In late 2024, Intel employed 109,800 people. 99,500 were “main employees”, Which means that the company is firing about 24,000 people this year.
The reduction means a quarter of the company, But the result may be greater if it consider that it divested in other businessesreducing the size of the organization.
Another factor is that it is not yet known how much each employee costs and which will be maintained. If the company maintains many qualified employees, despite the number, their value will be higher. And the maintenance of more qualified employees tends to represent a lower resignation in terms of costs.
And this is just the latest revelation about how deep Intel’s CEO Lip-B Tan is willing to cut costs while trying to level the organization after years of problems and an inexpressive response to AI boom.
At the end of June, Intel ended its automotive chips manufacturing unit and revealed that it would fire up to 20% of chip factories.
Factory closure
Lip-BU Tan, Intel’s CEO said the company has invested too much in new factories before ensuring sufficient demand. As a result, Its factories have become “unnecessarily fragmented” and the company needs to increase its “sync” capacity with the achievement of real goals.
Therefore, he canceled the “megafabrees” in Germany and Poland, where Intel planned to invest dozens of billions of dollars and employ 3,000 workers. Another 2,000 jobs would be created in an assembly and testing unit.
In Costa Rica, more than 2,000 employees should remain working in the areas of engineering and corporate. And the company is also cutting spending on Ohio.
Future of the company
It is unclear if layoffs will decrease rhythm, but Intel states that it has already “completed most of the planned measures of reducing advertised personnel”.
To date, also due to US $ 1.9 billion (R $ 10.52 billion) that Intel is incurring to perform these layoffs and this restructuring, The company is still losing money in this quarter.
The company reported a loss of US $ 2.9 billion (R $ 16.05 billion) over a quarterly revenue of US $ 12.9 billion (R $ 71.40 billion). The revenue remains stable compared to the previous year.
Amid the continuous boom of AI, Intel’s date center businesses grew only 4% over the previous year to US $ 3.9 billion (R $ 21.59 billion). About that, The PC chips business dropped 3%to $ 7.9 billion (R $ 43.73).
Intel’s foundry business, where it also manufactures chips for other customers, They grew 3%to US $ 4.4 billion (R $ 24.35 billion).
Throughout the year, the company should reduce its expenses by $ 17 billion (US $ 94.10 billion). In addition, she states that at least one of her next main Laptop chips is on the right track. And Nova Lake is still on its way to launched at the end of 2026.
Source: Intel and The Verge.
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Source: https://www.adrenaline.com.br/intel/intel-vai-demitir-24-mil-funcionarios-e-encerrar-projetos-em-3-paises/
