Intel Layoffs 2025: Factory Cuts, Ohio Plans on Hold

Chipmaker Intel is moving forward with another wave of massive layoffs in an attempt to restructure operations and refocus spending. According to an internal memo sent to employees on July 24, 2025, CEO Lip-Bu Tan outlined a plan to reduce the company’s core workforce to 75,000 by the end of the year down from nearly 100,000 just a year ago. Tan described the move as necessary to “streamline the organization” and eliminate inefficiencies at every level.

The layoffs, which come after a previously announced 15% staff reduction, now amount to over 24,000 job cuts in 2025 alone. The impact is expected to be felt globally, though U.S.-based workers particularly those linked to the company’s Ohio expansion plans may bear the brunt. “We are making hard but necessary decisions,” Tan said in the memo. “There are no more blank checks.”

Ohio Mega-Fab Plans Put on Hold

Intel’s $28 billion mega-site in Ohio, initially announced in 2022 as a symbol of American semiconductor revitalization, is now facing delays. Two major factories that were expected to create 3,000 Intel jobs and up to 7,000 construction jobs are being put on hold indefinitely. Tan stated the decision is part of a broader shift to align spending with realistic demand projections, especially as global chip competition tightens.

This development casts uncertainty over one of the most ambitious chip production efforts on U.S. soil. It also raises questions about government-backed semiconductor investment, given that the Ohio site was expected to benefit from federal funding under the CHIPS Act.

Global Operations Shrinkage and Site Shifts

Beyond Ohio, Intel is scaling back several international ventures. Factory development plans in Germany and Poland have been scrapped. At the same time, the company is shifting some assembly and testing operations out of Costa Rica to more cost-efficient facilities in Vietnam and Malaysia.

However, Intel confirmed that Costa Rica will retain core engineering and corporate functions. This consolidation is part of what the company calls a “refocus on strategic hubs,” aimed at increasing return on investment.

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Q2 Earnings Reveal Mounting Pressure

Intel’s latest financial report added further context to its strategic overhaul. The company posted second-quarter revenue of $12.9 billion, a modest beat compared to analyst expectations, but still flat compared to the same period last year. What raised more eyebrows was the reported net loss of $2.9 billion, nearly double the figure from Q2 2024.

These results marked the fifth straight quarter of operating under pressure. According to News18, CEO Tan reiterated that every product and division must now “make economic sense” as part of the new cost-efficiency mandate.

Despite the steep losses, Intel’s stock saw a modest uptick in after-hours trading following the earnings release, likely buoyed by investor optimism around cost-saving measures.

AI and Core Products Remain the Focus

Tan emphasized that Intel is not retreating from innovation, but rather narrowing its focus. “We are doubling down on our core product portfolio and AI strategy,” he said. This includes realigning capital expenditure toward data center chips, edge AI computing, and next-gen processor lines.

With competitors like NVIDIA and AMD rapidly capturing AI-related market share, Intel’s repositioning aims to maintain relevance in an increasingly AI-driven chip landscape. Tan acknowledged the fierce competition but expressed confidence in Intel’s upcoming product roadmap.

Worker Sentiment and Political Reactions

Internally, the restructuring has caused anxiety across Intel’s workforce. Anonymous employee comments shared on Blind and LinkedIn suggest frustration and confusion, especially among teams affected by factory delays and remote relocations. Many were hoping for growth and stability under the CHIPS Act, not job uncertainty.

Ohio state officials have not yet formally responded to Intel’s decision to pause its mega-site, but the implications could be politically sensitive. The site was expected to be a flagship example of American manufacturing revival, bolstered by federal funding and bipartisan support.

Meanwhile, the decision to cancel European expansion plans has sparked mixed reactions overseas. In Germany, where the government had committed financial incentives, Intel’s withdrawal has drawn criticism from local officials who had hoped the project would spark regional innovation.

Stock Outlook and Q3 Guidance

Despite recent financial hurdles, Intel expects third-quarter revenue between $12.6 billion and $13.6 billion in line with Q3 2024 results. The company is betting that a leaner structure and focused investment will help stabilize its share value, which has dropped over 30% since the beginning of 2024.

Investors are cautiously optimistic. While the broader chip industry has been thriving, Intel has lagged behind due to execution missteps and internal inefficiencies. Now, the restructuring plan is being viewed as a critical reset but one that must deliver results quickly.