Intel lays off 15% of workforce as sixth consecutive quarterly loss widens to $2.9B
Jul 25, 2025
Key Points
- Intel is cutting 15% of its workforce to 75,000 employees by year-end and scrapping European chip factory plans, admitting its foundry business model cannot compete with TSMC.
- The company reported a $2.9 billion quarterly loss—its sixth consecutive—and will operate at 65% of its June 2024 headcount, now smaller than competitor Nvidia.
- CEO Lip Bu Tan is refocusing Intel on three businesses: PC processors, AI chips, and its 14A node technology, betting a manufacturing breakthrough can close the gap with rivals.
Summary
Intel is cutting 15% of its workforce, reducing headcount to 75,000 by year-end from 116,500 in June 2024. The company reported a $2.9 billion quarterly loss, its sixth consecutive quarter in the red, and is scrapping plans to build new chip facilities in Europe. CEO Lip Bu Tan is repositioning Intel around three core businesses: AI chips, PC processors, and its 14A node technology.
One year ago, Intel had 116,500 employees. By the end of 2025, it will operate at roughly 65% of that size. Nvidia, which has dominated Intel in AI accelerators, has 42,000 employees globally.
Intel's pivot is a tacit admission that its older business model no longer works. The company is abandoning its foundry ambitions in Europe, signaling a retreat from its attempt to compete as a contract manufacturer against TSMC. Instead, it is concentrating on products where it still has leverage: PC processors, where it remains entrenched in supply chains, and AI chips, where it is trying to catch up to Nvidia after years of engineering stumbles.
The 14A node focus is telling. This is Intel's internal roadmap designation for next-generation process technology. The specificity suggests the company is betting on a technical inflection that could close the gap with TSMC on manufacturing capability. Whether that bet pays off will determine whether Intel's cuts are a sharp recalibration or the beginning of a longer decline.