Intel, the semiconductor giant, is undergoing a massive global restructuring, announcing plans to cut 24,500 jobs and significantly delay the opening of its highly anticipated chip manufacturing facility in Ohio. These drastic measures are part of a broader strategy to realign the company’s spending with current market demand and enhance financial discipline.
By the end of 2025, Intel aims to reduce its global employee count to 75,000, a substantial decrease of 24,500 from the previous year. This includes a 50% streamlining of management layers already completed in the second quarter of 2025.
Beyond job cuts, Intel is also recalibrating its global manufacturing footprint. The company is discontinuing planned manufacturing projects in Poland and Germany, and will relocate test and assembly operations from Costa Rica to larger sites in Malaysia and Vietnam.
The $28 billion semiconductor facility in Ohio, initially slated to begin operations in 2025, will now see its opening pushed back to at least 2030 or 2031. This delay is a strategic move to ensure capital expenditure is directly aligned with tangible market demand, rather than speculative growth.
The restructuring comes as Intel faces considerable financial headwinds. The company reported a $2.9 billion quarterly loss for the period ending June 2025, marking its sixth consecutive quarterly loss, despite achieving $12.9 billion in revenue. This has led to significant restructuring charges of $1.9 billion in the second quarter.
Intel CEO Lip-Bu Tan emphasized a new era of financial discipline. “There are no more blank checks,” Tan stated, adding that “every investment must make economic sense.” He attributed past challenges to “capacity investments we made over the last several years [that] were well ahead of demand and were unwise and excessive,” resulting in a “needlessly fragmented and underutilized factory footprint.”
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