The chipmaker just announced it’s downsizing its workforce by over 15 percent as part of a new $10 billion cost savings plan for 2025, which will mean a headcount reduction of greater than 15,000 roles, Intel tells The Verge. The company currently employs over 125,000 workers, so layoffs could be as many as 19,000 people.
Despite being profitable overall, Intel’s chip-making unit has been facing significant challenges. In 2023, the unit reported an operating loss of $7 billion, which is a substantial increase from the $5.2 billion loss in 202212. This has been a major concern for the company as it tries to regain its competitive edge in the semiconductor industry.
Intel’s revenue from this unit also dropped by 31%, from $27.49 billion in 2022 to $18.9 billion in 20232. The company is working on a turnaround plan, including significant investments in new technologies and manufacturing capabilities, but it will take time to see the results1.
