The American chip giant on Thursday afternoon said in a letter from CEO Lip-Bu Tan, published online in concert with the company's latest financial results, that it plans to end the year with a workforce of around 75,

On Friday, Intel shares tumbled 8.5% as remarks from CEO Lip‑Bu Tan prompted concerns that he’s emphasizing expense reductions at the expense of the company’s technical supremacy. In the Q2 earnings call,

Intel’s turnaround plan includes major layoffs and outsourcing marketing to Accenture’s AI. Can the chipmaker regain its edge — or is it a risky bet?

This means that the much-vaunted megafab near Magdeburg in eastern Germany, first announced in 2022, will not be built. Intel was planning to invest more than €30 billion (about $35 billion) in the chip factory, but it ran into delays and former chief Pat Gelsinger put it on hold last year.

A prominent investment analyst warned Intel may be cutting too deep, eliminating "pivotal" resources in the name of short-term profits.

Unlike previous Intel layoffs, which offered severance or buyouts, the 2025 job cuts provide no such safety net.

There are no more blank checks,” says new Intel CEO Lip-Bu Tan, as the company slashes jobs, restructures operations, and pivots toward AI and efficiency.

The layoffs are one of the first major decisions made by Intel Chief Executive Lip-Bu Tan (pictured), who took over the company’s top job in March, replacing former head honcho Pat Gelsinger in an effort to arrest a long, slow slide into financial trouble.

Intel (NASDAQ:INTC) provided optimistic revenue guidance for the upcoming quarter after delivering second-quarter revenue results that exceeded analyst forecasts. However, the semiconductor giant warned that earnings took a hit due to write-downs connected to scaling back plans for new chip manufacturing facilities.