Intel CEO Lip-Bu Tan despatched a memo to staff Thursday informing them of great ongoing layoffs and different cost-cutting measures. The corporate has struggled to take care of a aggressive edge amid ongoing monetary losses and strategic setbacks within the AI and semiconductor markets.
“There aren’t any extra clean checks,” Tan wrote in a memo to staff, printed by Reuters. “Each funding should make financial sense. We’ll construct what our clients want, once they want it, and earn their belief via constant execution.”
The memo straight addresses …
- A discount of about 15% (over 25,000 jobs) by way of layoffs and attrition
- Operational streamlining to “drive better effectivity and enhance accountability at each degree”
- Cancellation of recent manufacturing unit tasks in Germany and Poland, and a slowdown in Ohio facility building, adjusting spending to precise market demand
- Relocation of producing operations from Costa Rica to Asia, whereas sustaining choose engineering features in Costa Rica
“We’re making exhausting however mandatory choices to streamline the group, drive better effectivity, and enhance accountability at each degree of the corporate,” wrote the CEO, who took over in March.
Intel’s inventory jumped early in 2025 as optimism constructed round new management, however shares fell over 9% after Thursday’s Q2 earnings and layoff announcement, threatening to erase most yearly good points.
Intel has misplaced floor to Nvidia within the AI sector and to AMD within the conventional computing market. In contrast to different Silicon Valley giants, it doesn’t have booming AI or cloud companies to offset its losses.
Microsoft, IBM, and Google have additionally shed 1000’s of employees this 12 months. CEOs, together with Meta’s Mark Zuckerberg and Microsoft’s Satya Nadella, have mentioned they’re reducing employees to streamline operations and liberate capital to take a position billions in AI.
For this story, Fortune used generative AI to assist with an preliminary draft. An editor verified the accuracy of the knowledge earlier than publishing.
