Bad news for employees of this company as it decides to fire 25000 workers due to...

Intel is gearing up for a major reset, as the chipmaker is set to cut more than 25000 jobs, reported The New York Times. By the end of 2025, the company hopes to have reduced its workforce from 108,900 at the end of the previous year to roughly 75,000. The decision was made as the business struggles to make progress in the AI field, has financial difficulties, and copes with an overly large operational structure.

The corporation has already laid off almost 15,000 employees, or 15% of its total workforce, since April 2025. This comes after a comparable round of layoffs that affected over 15,000 employees the year before.

The downsizing process is already in motion, involving layoffs and the winding down of certain business units. These shifts are affecting several international operations, with significant impacts seen across sites in the United States, Germany, Poland, and Costa Rica.

The announcement came as Intel reported a $2.9 billion second-quarter net loss, which was mostly attributable to restructuring costs associated with its recent cost-cutting measures. Revenue for the quarter stayed at $12.9 billion. With a midpoint projection of $13.1 billion, the business projects revenue to range between $12.6 billion and $13.6 billion, indicating another loss in the current quarter.

“I know the past few months have not been easy,” CEO Lip-Bu Tan wrote in a letter to employees. “We are making hard but necessary decisions to streamline the organisation, drive greater efficiency and increase accountability at every level of the company.”

Tan, a former Intel board member and venture investor who took over as CEO in March, is spearheading initiatives to regain the company's competitive advantage.  He has concentrated on increasing the rate of innovation, tightening financial discipline, and simplifying internal procedures since assuming leadership.