Intel Announces 25000 Job Cuts Amid 33% Stock Decline in Turnaround Strategy

Intel’s new CEO, Lip-Bu Tan, has unveiled a sweeping restructuring plan to eliminate 25,000 jobs globally by 2025, reducing the workforce from 109,000 in late 2024 to 75,000 [1]. The move, described as a “turnaround” strategy, reflects a dramatic shift toward cost discipline after years of financial losses and competitive setbacks in the semiconductor and AI markets. In a memo to employees, Tan emphasized that “there are no more blank checks,” signaling a focus on operational efficiency and profitability over speculative investments [2]. The announcement follows a period of turmoil for Intel, which has seen its stock price drop 33% since 2024 amid mounting losses and strategic challenges [3].

The restructuring includes layoffs and attrition to cut 15% of the workforce, alongside operational streamlining and the cancellation of costly projects. Construction of new factories in Germany and Poland has been halted, and progress at an Ohio facility has slowed to align with market demand [4]. Manufacturing operations are also shifting from Costa Rica to Asia, with only select engineering roles retained in the region. Tan framed these measures as “hard but necessary decisions” to realign the company’s priorities and restore accountability across all levels of the organization [1].

Intel’s financial struggles have intensified pressure on management to reverse its fortunes. A Q2 report revealed billions in losses, prompting immediate action to stabilize the balance sheet [6]. The company has ceded ground to rivals such as AMD in traditional computing and NVIDIA in AI, lacking the lucrative cloud or AI divisions that sustain other tech giants [1]. Tan’s strategy prioritizes short-term cost reductions over high-risk innovation, a pivot that has drawn mixed reactions from investors and analysts. While some argue the cuts are essential to preserve liquidity, critics warn that reduced R&D investment could hinder Intel’s long-term competitiveness [8].

The announcement has further rattled investor confidence, with shares falling over 9% following the Q2 earnings and layoff announcement. This decline threatens to erase most of Intel’s gains for 2025 [1]. The stock’s volatility mirrors broader industry trends, as companies like Microsoft, IBM, and Google have also announced significant workforce reductions to fund AI initiatives and streamline operations [1]. Tan’s leadership faces scrutiny as Intel seeks to navigate a market saturated with aggressive competitors, delayed chip production, and underperforming acquisitions [9].

Tan has defended the cuts as a pragmatic response to economic realities, emphasizing the need to “do more with less” and focus on optimizing existing operations [10]. However, the scale of the layoffs raises concerns about potential erosion of technical expertise and employee morale, particularly in critical research areas. With its foundry business investments paused and strategic overhauls underway, Intel’s path to recovery hinges on executing cost discipline while maintaining innovation momentum in a rapidly evolving sector [4].

Source: [1] [Tech giant stuns with 25000 layoffs as jobs crisis deepens](https://www.dailymail.co.uk/yourmoney/article-14941117/intel-layoffs-jobs-crisis-deepens-us.html) [2] [Intel job cuts swell to 25000 as CEO Tan plots costly turnaround](https://www.calcalistech.com/ctechnews/article/wmyn05rib) [3] [Intel Shares Plunge on Billions in Q2 Loss](https://finance.yahoo.com/news/intel-shares-plunge-billions-q2-122006114.html) [4] [Intel slumps as potential foundry exit deepens investor gloom](https://m.economictimes.com/tech/technology/intel-slumps-as-potential-foundry-exit-deepens-investor-gloom/articleshow/122910366.cms) [6] [Intel shares slide as deeper losses, major job cuts spook investors](https://www.tradingview.com/news/invezz:88c789f2f094b:0-intel-shares-slide-as-deeper-losses-major-job-cuts-spook-investors/) [8] [Intel says nearly a quarter of its workforce will be gone by year’s end](https://www.oregonlive.com/silicon-forest/2025/07/intel-says-nearly-a-quarter-of-its-workforce-will-be-gone-by-years-end.html) [9] [Intel stock plunges as Tan warns foundry dreams could be](https://www.calcalistech.com/ctechnews/article/3lk9y1s6p) [10] [Intel Shares Plunge on Billions in Q2 Loss](https://finance.yahoo.com/news/intel-shares-plunge-billions-q2-122006114.html)