Tech giant Intel to slash 24,000 jobs and shelve factory projects in broad cost-reduction strategy
Intel Unveils New Strategy to Regain Market Share and Drive Growth
In a bid to regain lost market share and propel long-term growth, Intel Corporation has announced a comprehensive strategy that encompasses workforce adjustments, product development focus, AI and technology concentration, and a return-to-office policy.
Workforce Cuts and Organizational Streamlining
Intel plans to trim its global workforce by approximately 15%, equating to around 24,000 roles. The company aims to end 2025 with a headcount of approximately 75,000 employees. Management layers will be reduced by 50% to eliminate bureaucracy, making the company faster, more agile, and cost-efficient [2][4].
Foundry and Product Strategy Focus
Intel is adopting a more financially disciplined approach to its foundry business and emphasizing a back-to-basics strategy for its x86 products. This includes reintroducing simultaneous multithreading (SMT) to client processors' performance cores, simplifying product lineups, and instituting a policy where every major chip design must be personally reviewed by CEO Lip-Bu Tan before tape-out [1][3].
The company also plans to launch the Intel 18A-based Panther Lake processors by the end of 2025 for strong notebook positioning, and ramp server CPUs like Granite Rapids, which are targeted at AI and hyperscale workloads [1]. Intel is also focusing on improving competitiveness in high-end desktop CPUs with progress on Nova Lake [1].
AI and Technology Focus
Intel is refining its AI strategy by concentrating on disruptable and differentiable segments like inference and agentic AI, starting from emerging AI workloads and working backward to design software, systems, and silicon optimized for these use cases [3].
Return-to-Office Policy
Intel is enforcing a tighter workplace policy with a planned full implementation of its return-to-office mandate by September 2025. The company is completing necessary improvements at its sites to operate at full capacity, reversing the more flexible remote work stance of previous management [4].
Financial Performance
In Q2 2025, Intel reported a revenue of $12.9 billion, higher than analyst expectations of $11.92 billion. However, the company reported an overall net loss of $2.9 billion across Q2 2025 [5].
Forrester senior analyst, Alvin Nguyen, has stated that Tan's comments necessitate a clearer strategy on regaining Intel's lost market position [6]. Intel has also cancelled plans to build new chip factories in Germany and Poland [7].
Senior Engineering Hires
Last month, Intel announced new senior engineering hires, signalling a commitment to its new strategy [8]. Despite the challenges, Intel's CEO, Lip-Bu Tan, stated that the changes are aimed at driving organizational effectiveness and transforming the company's culture [9].
[1] OregonLive [2] Intel Corporation Q2 2025 Earnings Release [3] Forrester Research [4] Intel's Return-to-Office Policy [5] Intel Corporation Q2 2025 Financial Results [6] OregonLive [7] Reuters [8] Intel Corporation Senior Engineering Hires [9] Intel Corporation Q2 2025 Earnings Call Transcript
In line with Intel's new strategy, the company is bolstering its AI capabilities, focusing on segments like inference and agentic AI, aiming to regain its competitive edge in the technology-driven field of artificial intelligence.
Additionally, Intel's financial department will need to prioritize cybersecurity measures, given the increasing interweaving of finance and technology, safeguarding the corporation's financial performance and overall market standing.
