April 26, – Intel is preparing for a sweeping restructuring that could see over 20% of its global workforce—more than 21,000 employees—laid off, as the company shifts aggressively toward its foundry ambitions.
The cuts, aimed at streamlining operations and slashing costs by $10 billion this year, reflect a tough reset under new CEO Lip-Bu Tan.
The layoffs come just as Intel released its Q1 2025 earnings, reporting $12.7 billion in revenue, which beat expectations but remained flat year-over-year.
Despite a better-than-expected non-GAAP EPS of $0.13, profitability still fell short compared to last year, and key segments like server and PC chip sales saw continued weakness.
Tan, who took over in March, is now focused on transforming Intel into a powerhouse semiconductor foundry—competing directly with TSMC.
Intel Foundry Services has already secured deals with AWS, Microsoft, and the U.S. government, and is betting big on next-gen chipmaking technologies like Intel 18A and 14A.
While Intel’s pivot shows promise, analysts warn that the massive layoffs may affect morale and innovation. With support from the CHIPS Act and over $100 billion in investments, Intel’s future now hinges on whether its foundry gamble can offset the pain of deep workforce cuts.