{"id":787,"date":"2025-07-25T00:29:28","date_gmt":"2025-07-24T20:29:28","guid":{"rendered":"https:\/\/www.actutech.app\/intel-reveals-it-will-shed-24000-employees-this-year-and-retreat-in-germany-poland-and-costa-rica\/"},"modified":"2025-07-25T00:29:28","modified_gmt":"2025-07-24T20:29:28","slug":"intel-reveals-it-will-shed-24000-employees-this-year-and-retreat-in-germany-poland-and-costa-rica","status":"publish","type":"post","link":"https:\/\/www.actutech.app\/en\/intel-reveals-it-will-shed-24000-employees-this-year-and-retreat-in-germany-poland-and-costa-rica\/","title":{"rendered":"Intel reveals it will shed 24,000 employees this year and retreat in Germany, Poland, and Costa Rica"},"content":{"rendered":"
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In April, Intel attempted to announce layoffs without announcing layoffs. \u201cWe have not set any headcount reduction target,\u201d Intel spokesperson Sophie Metzger told\u00a0The Verge<\/em><\/a>.<\/em> But the company has laid off thousands of employees since<\/a> \u2014 and today, in the company\u2019s Q2 2025 earnings<\/a>, it has revealed that Intel will dramatically shrink as a result of those layoffs. Intel says it will retreat from planned projects in Germany and Poland, end its assembly and test operations in Costa Rica, and finish 2025 with just around 75,000 \u201ccore employees\u201d in total.<\/p>\n

Intel employed 109,800 people at the end of 2024, of which 99,500 were \u201ccore employees,\u201d so the company is pushing out around 24,000 people this year \u2014 shrinking Intel by roughly one-quarter. (It has also divested other businesses, shrinking the larger organization as well.)<\/p>\n

It\u2019s just the latest revelation about how deep Intel\u2019s new CEO Lip-Bu Tan<\/a> is willing to cut as he attempts to flatten the organization<\/a> after years of troubles and a lackluster response to the AI boom<\/a>. In late June, Intel shut down its automotive chipmaking business<\/a> and revealed it\u2019d lay off up to 20 percent of silicon factory workers<\/a>; in July, it spun out its RealSense computer vision business<\/a>.<\/p>\n

Today, on the company\u2019s earnings call, Intel\u2019s CEO says that Intel had overinvested in new factories before it had secured enough demand, that its factories had become \u201cneedlessly fragmented,\u201d and that it needs to grow its capacity \u201cin lock step\u201d with achieving actual milestones.<\/p>\n

\u201cI do not subscribe to the belief that if you build it, they will come. Under my leadership, we will build what customers need when they need it, and earn their trust,\u201d says Tan.<\/p>\n

Now, in Germany and Poland, where Intel was planning to spend tens of billions of dollars respectively on \u201cmega-fabs\u201d that would employ 3,000 workers<\/a>, and on an assembly and test facility<\/a> that would employ 2,000 workers, the company will \u201cno longer move forward with planned projects\u201d and is apparently axing them entirely. <\/p>\n

Intel has had a presence in Poland since 1993<\/a>, however, and the company did not<\/em> say its R&D facilities there are closing. (Intel had previously pressed pause on the new Germany and Poland projects \u201cby approximately two years\u201d <\/em>back in 2024<\/a>.)<\/p>\n

In Costa Rica, where Intel employs over 3,400 people<\/a>, the company will \u201cconsolidate its assembly and test operations in Costa Rica into its larger sites in Vietnam.\u201d Metzger tells The Verge<\/em> that over 2,000 Costa Rica employees should remain to work in engineering and corporate, though.<\/p>\n

The company is also cutting back in Ohio: \u201cIntel will further slow the pace of construction in Ohio to ensure spending is aligned with market demand.\u201d Intel CFO David Zinsner says Intel will continue to make investments there, though, and construction will continue.<\/p>\n

It\u2019s not clear if the layoffs will slow now that we\u2019re over halfway through the year, but Intel states today that it has already \u201ccompleted the majority of the planned headcount actions it announced last quarter to reduce its core workforce by approximately 15 percent.\u201d<\/p>\n

So far, partially because of the $1.9 billion that Intel is incurring to do these layoffs and this restructuring, Intel is still losing money this quarter. It\u2019s reporting a $2.9 billion loss on $12.9 billion in quarterly revenue (which is itself flat year over year). Amid the ongoing AI boom, Intel\u2019s data center business is only up 4 percent year over year to $3.9 billion, while its PC chips are down 3 percent to $7.9 billion. Intel\u2019s foundry business, where it does chipmaking for other customers as well, is up 3 percent to $4.4 billion.<\/p>\n

The company says it\u2019s on track to shrink its expenses by $17 billion over the full year, and that at least one of its next flagship laptop chips<\/a> is on track, too: \u201cThe first Panther Lake processor SKU remains on track to begin shipping later this year, with additional SKUs coming in the first half of 2026.\u201d <\/p>\n

Intel\u2019s follow-up, Nova Lake, is still on track for the end of 2026, according to Tan, and he says he has \u201ctaken steps to correct past mistakes regarding multi-threading capabilities\u201d in the company\u2019s Performance cores there. What\u2019s more, Tan says he\u2019s personally taking on responsibility for each new chip design with a new policy<\/a> that he says is already in effect: \u201cevery major chip design needs to be personally reviewed and approved by me before tape out.\u201d<\/p>\n

Meanwhile, Intel says it\u2019s also ramping its popular but previously expensive Lunar Lake chips<\/a> this next quarter.<\/p>\n

Tan says he will also announce new leadership for Intel\u2019s data center business next quarter, and will share more on its strategy for a full-stack AI solution \u201cin the coming months.\u201d<\/p>\n

Correction, July 24th: <\/strong>We originally incorrectly calculated that Intel would shed around 33,000 employees, but the actual total should be closer to 24,000. (Intel stated it would end the year with 75,000 core employees, but the 108,900 number we originally compared to was last year\u2019s total headcount including other related businesses, not Intel core headcount, which was 99,500.)<\/em><\/p>","protected":false},"excerpt":{"rendered":"

In April, Intel attempted to announce layoffs without announcing layoffs. \u201cWe have not set any headcount reduction target,\u201d Intel spokesperson […]<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-787","post","type-post","status-publish","format-standard","hentry","category-non-classe"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/posts\/787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/comments?post=787"}],"version-history":[{"count":0,"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/posts\/787\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/media?parent=787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/categories?post=787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.actutech.app\/en\/wp-json\/wp\/v2\/tags?post=787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}