Kristina Roberts
Intel, one of the biggest computer chip companies in the world, has announced that it will be cutting down a large number of jobs in the United States and other places by the end of this year. The company currently has around 99,500 workers, but by December, it plans to reduce that number to 75,000. This means almost 24,500 people will be affected. The news has come as a surprise to many, especially as Intel also said it expects to lose more money than experts thought in the next few months.
Intel’s new CEO, Lip-Bu Tan, is trying to make big changes to help the company recover from its problems. The company has not been doing well for some time now. While other chip companies like Nvidia have grown fast because of the high demand for AI technology, Intel has not been able to catch up. This has worried investors, and now, with these new job cuts and changes, everyone is watching to see if Intel can turn things around.
In a letter sent to employees, CEO Tan explained why the company is making these decisions. He said that Intel will no longer build chip factories ahead of time. Before, Intel used to start building new factories even before there was clear demand for its chips. But now, the company will only build new factories when it knows that people or companies really need their chips. This is a big change from the way Intel has worked for many years.
As part of this new plan, Intel will slow down the building of its new factories in Ohio. It will also not go ahead with its earlier plans to build new factories in Poland and Germany. These decisions are tough, but the company believes they are necessary to avoid wasting money. Tan said that the company wants to be more careful and smart about how it spends its resources.
Another major decision is that Intel will combine its chip packaging operations. Earlier, Intel had separate packaging units in different countries like Costa Rica, Vietnam, and Malaysia. This was done to keep the supply chain strong, so that if one location had a problem, the others could still work. But now, Intel will join these operations together, mainly in Vietnam and Malaysia. This will help the company save money and work more efficiently, even though it’s a big change from its usual way of doing things.
Even though these announcements might sound negative, some investors are actually feeling hopeful. After the news came out, Intel’s shares went up by 2% in after-hours trading. This shows that people believe CEO Tan’s plans might help the company get stronger in the long run. So far in 2025, Intel’s stock has gone up by about 14%, as many investors believe Tan has the ability to fix past mistakes.
Earlier this month, Intel had already let go of many workers as part of this plan. Around 15% of its staff had been affected by the beginning of July. The rest of the job cuts will be done slowly, either through people choosing to leave the company on their own (called attrition) or through other methods that haven’t been shared yet.
Tan’s decisions show that he is thinking ahead, but also being very careful. Intel has faced many problems over the years. It missed out on chances to grow in areas like artificial intelligence (AI), which is now very important for tech companies. Nvidia, a competitor, has become very successful because of its focus on AI. Intel wants to catch up, but first it needs to fix its current problems and become more efficient.
Tan is also trying to make Intel better at building the next generation of chips. This means using new technology and methods to make chips faster and more powerful. This is important because many big companies, including those making computers, phones, and AI tools, need better chips. If Intel can do this well, it has a good chance of becoming a leader again.
In the near future, however, Intel says it will still lose money. For the third quarter of this year (July to September), the company expects to lose about 24 cents per share. This is more than what experts thought, which was about 18 cents per share. This shows that the company’s problems are not over yet.
At the same time, there is a small positive sign. Intel expects its revenue (the total money it makes) to be between $12.6 billion and $13.6 billion in the September quarter. The middle point of this is $13.1 billion, which is a bit more than what experts expected — around $12.65 billion. So while Intel may lose more money than expected, it might also earn slightly more.
These are very big changes for a company like Intel. Many families will be affected by the job cuts, and building fewer factories might slow down some parts of the business. But CEO Tan believes these steps are necessary if Intel wants to become strong again. He has a big job ahead of him, but he seems ready to take bold steps.
In the past, Intel was known as one of the top chipmakers in the world. Now, with fast-moving changes in the tech world, it has fallen behind. But this new plan shows that the company is not giving up. With smarter decisions, new technology, and a more focused plan, Intel hopes to come back stronger.
In the end, these changes may take time to show results. But they also show that Intel is serious about fixing its problems. Only time will tell if the company’s efforts will work. For now, many people — including employees, investors, and tech fans — will be watching closely to see what happens next.
