Shockwaves ripple through the tech industry as Intel confirms massive restructuring plans that will leave tens of thousands without jobs and halt several flagship international operations.

After months of vague language about “headcount actions,” Intel has come clean in its Q2 2025 earnings report: the chipmaker is undergoing a seismic shift, cutting approximately 24,000 employees — nearly a quarter of its core workforce. The company is retreating from major manufacturing plans in Germany and Poland, shutting down assembly and test operations in Costa Rica, and slowing construction in Ohio.

CEO Lip-Bu Tan is unapologetically shifting Intel away from its former growth-at-all-costs strategy. “We will build what customers need when they need it,” he stated on the earnings call, distancing Intel from the risky “build it and they will come” approach that previously dominated.

Abandoned international mega-projects paint a clear picture of the new direction. Intel will no longer proceed with its $30+ billion “mega-fab” facility in Germany, which would have created 3,000 jobs, or the 2,000-employee test facility in Poland. In Costa Rica, more than 1,400 jobs could be at risk as the company consolidates operations to Vietnam, though around 2,000 employees will stay in engineering roles.

Despite slashing jobs, Intel still lost $2.9 billion this quarter, bringing in $12.9 billion in revenue — flat year-over-year. Its PC chip sales dropped 3%, while its data center division saw modest 4% growth. Even amid the AI gold rush, Intel is struggling to catch up.

More changes are coming. Tan says he will personally approve all new chip designs and promises a full-stack AI strategy reveal “in the coming months.” Panther Lake and Nova Lake chips remain on schedule for release in late 2025 and 2026 respectively.

Intel aims to save $17 billion this year, and while restructuring may steady the ship long-term, the immediate toll — in jobs, global presence, and investor confidence — is steep.

🔗 Full report at The Verge