Intel to lay off 24,000 employees this year
What's the story
Intel has announced plans to lay off approximately 24,000 employees this year. The decision comes amid significant changes within the company. The tech giant will also be pulling out from planned projects in Germany and Poland, and shutting down operations in Costa Rica. The layoffs will reduce Intel's global workforce from 99,500 "core employees" at the end of 2024 to about 75,000 by the end of this year.
Operational changes
Intel to consolidate operations in Costa Rica
In Costa Rica, where it employs over 3,400 people, Intel will "consolidate its assembly and test operations into its larger sites in Vietnam." The company had previously planned to invest tens of billions of dollars in Germany for "mega-fabs" and a significant investment in an assembly and test facility in Poland. However, it has now decided not to cancel these projects. CEO Lip-Bu Tan emphasized a shift toward demand‑driven manufacturing, scaling operations only when customers require capacity.
Quarterly results
Intel's Q2 revenue was steady at $12.9 billion
Intel's Q2 results revealed a mixed financial picture. Revenue held steady at roughly $12.9 billion, slightly above expectations. Still, Intel reported a steep net loss of approximately $2.9 billion, largely driven by $1.9 billion in restructuring costs related to job cuts and project cancelations. Amid the broader AI boom, Intel's data center revenue rose 4% to $3.9 billion, while PC chip revenue declined 3% to $7.9 billion. Its foundry business grew 3% year-over-year to $4.4 billion.