Intel Cuts 15% of Workforce, Delays European Projects, and Consolidates Asian Operations
Intel has announced major restructuring efforts, including delaying key manufacturing projects in Europe, consolidating operations in Asia, and cutting 15% of its global workforce. The move comes as part of a broader strategy under new CEO Lip-Bu Tan to streamline operations and align growth with market demand.
In its Q2 earnings report, Intel confirmed it is pausing previously announced projects in Poland and Germany. These include a chip production facility in Germany and a testing and assembly plant in Poland—both of which were originally suspended in 2024 and now face indefinite delays.
Additionally, the company will consolidate its testing operations by shifting resources from Costa Rica to more cost-effective facilities in Vietnam and Malaysia. This follows similar moves to optimize manufacturing capacity across Intel’s global footprint.
“We made investments in capacity over the last few years that were too far ahead of demand and excessive,” CEO Tan stated during the earnings call. “Our factory footprint became fragmented. Going forward, we’ll ensure our capacity grows only in line with actual demand.”
Intel continues to pull back on its manufacturing projects | TechCrunch https://t.co/K8Oz6ARV3j
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Intel’s $28 billion chip manufacturing plant in Ohio is also facing further delays. Initially scheduled to open in 2025, the project was postponed in February and is now expected to be pushed back again.
Tan, who stepped into the CEO role in March 2025, has prioritized reducing inefficiencies and cutting non-essential operations. As part of this effort, Intel has reduced its management layers by 50% and is targeting a leaner workforce of approximately 75,000 employees by year-end—down from 124,800 in 2023.
The downsizing includes significant layoffs within Intel’s Foundry unit, which designs and manufactures chips for external clients. Between 15% and 20% of Foundry staff have been affected, contributing to the broader workforce reduction.
Intel confirms it will cut a third of its workforce by the end of 2025 https://t.co/zuxN0n5AoN
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“Reducing redundancies and increasing accountability is a key area of focus for me,” Tan said, noting that further changes are expected in Q3 as Intel continues to reshape its operational structure.
Intel employed 108,900 people as of the end of 2024. With the ongoing cuts, the company aims to realign its size, focus, and spending with actual business needs in a rapidly evolving semiconductor market.
