Intel Layoffs: US-Based Chip Giant To Cut Over 24,000 Jobs by End of 2025 and Scrap Global Expansion Plans in Germany, Poland; CEO Lip-Bu Tan Sends Memo to Employees
Intel CEO LIp-Bu Tan reportedly shared a new memo to the employees in which he told that the upcoming decisions would be "difficult but necessary". The Intel layoffs round will likely affect over 24,000 employees. Lip-BU tan also announced scrapping the expansion plans in Germany and Poland.
Santa Clara, July 25: Intel CEO Lip-Bu Tan has shared a memo that focuses on cutting costs and fixing manufacturing, leading to significant workforce downsizing this year. The upcoming Intel layoffs round will reportedly affect above 24,000 employees as the company focuses on slowing down factory construction, expansion plans and disciplined investment. Intel's new CEO shared a blueprint of what's coming to the company and its future.
As part of this new plan, Intel CEO Lip-Bu Tan will reportedly scrap the expansion plans in countries like Germany and Poland. The Intel layoffs since 2024 have affected thousands of employees, and the company has been struggling with its own issues, like lagging behind in the AI race and semiconductor and GPU business. It is facing global competition from NVIDIA, ARM, and other chipmakers. Amazon Layoffs in China: E-Commerce Giant To Shut Down Shanghai AI Research Lab Amid Rising US-China Tensions, Begins Dissolving Teams.
According to reports, under the leadership of new CEO Lip-Bu Tan, Intel will be left with 75,000 employees from nearly 1,00,000 headcount in 2024. Tan shared a memo with the Intel employees and described the next step, which will be taken in 2025. He called the layoffs "hard but necessary decisions." Amid the layoffs, the company's Q2 net loss was USD 2.9 billion, which also included the cost of restructuring. Intel's revenues for the same quarter were flat USD 12.9 billion, beating the market expectations.
In the latest memo to Intel employees, Lip-Bu Tan said that the company was going through a difficult period and acknowledged that the past few months were not easy. Intel's chief executive officer wrote that the company was making difficult but necessary decisions to streamline its operations and drive greater efficiency. Further, he mentioned that the actions would also increase accountability at each level of the company. Amazon Layoffs in 2025: US-Based E-Commerce Giant Rumoured To Cut 10% More Jobs by End of This Year, Slash 25% Principal-Level Roles, Says Report.
He said, "There are no more blank checks. Every investment must make economic sense". Tan said that Intel would build what customers need and earn their trust through consistent execution. As a part of this announcement, the company will scrap its multibillion-dollar 'mega-fab' in Germany. Under this project, Intel was supposed to hire 3,000 workers, and the assembly and test facility in Poland could have employed 2,000 employees. Further, a report mentioned the company would consolidate its assembly in Costa Rica and focus on moving operations to Vietnam and Malaysia.
(The above story first appeared on LatestLY on Jul 25, 2025 11:41 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).