Intel announces it will lay off 24,000 employees and pull out of Germany, Poland and Costa Rica
Intel has announced in its earnings report that it will lay off around 24,000 employees and will also cease operations in some countries.
Intel Reports Second-Quarter 2025 Financial Results :: Intel Corporation (INTC)
Intel reveals it will shed 24,000 employees this year and retreat in Germany, Poland, and Costa Rica | The Verge
https://www.theverge.com/news/713388/intel-q2-2025-leave-germany-poland-costa-rica
In its second quarter 2025 earnings report, Intel said it would cancel planned projects in Germany and Poland, end assembly and testing operations in Costa Rica, and cut its 'core workforce' to a total of about 75,000 by the end of 2025.
As of the end of 2024, Intel will employ approximately 109,800 people, of which approximately 99,500 are 'core employees,' meaning that 24,000 will be laid off by the end of 2025.
Intel's second-quarter revenue was $12.9 billion, flat compared to the same period last year. The company also recorded $1.9 billion in restructuring charges. It expects third-quarter revenue to be between $12.6 billion and $13.6 billion.
Intel has been performing poorly in recent years, and since
Intel to cut factory workers by up to 20% to restructure financial situation - GIGAZINE
'Intel overinvested in new factories before it had enough demand, resulting in unnecessarily fragmented factories,' said CEO Lip Vu Tang, stressing the need to expand in line with actual progress.
In Germany and Poland, Intel is investing billions of dollars in 'mega-fabs' there, but these are expected to be abandoned entirely. Intel has had a research center in Poland since 1993, but the fate of the facility has not been disclosed.
Intel currently employs more than 3,400 people in Costa Rica, and the company said it will consolidate its Costa Rican assembly and test operations into a larger facility in Vietnam. More than 2,000 of the Costa Rican employees will continue to work in engineering and corporate roles.
Job cuts will also be implemented in the US city of Ohio, and the pace of facility construction will be further slowed to align spending with market demand, although investment will continue and construction is expected to continue.
Development of Intel's next flagship product, Nova Lake, is proceeding as scheduled for the end of 2026, and the CEO himself has tried to reassure the market by saying, 'I personally review and approve all major chip designs.'
Intel is expected to see progress in its data center business in the third quarter.
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