Intel has reduced its workforce by 35,500 employees in less than two years, reflecting a deep restructuring under the new leadership of CEO Lip-Bu Tan.
More than 20,000 of these layoffs occurred in recent months, particularly during the second quarter of 2025. This significant downsizing has had a major impact on Intel’s financial structure.
Major Layoffs and Strategic Shift
The job cuts primarily affected engineers and technicians, mostly at the company’s Oregon facilities. Only a small percentage of those laid off held managerial positions. This move suggests a cost-reduction strategy focused on key areas such as data centers, artificial intelligence, and advanced manufacturing, rather than desktop CPUs, where AMD currently leads in sales.
In addition to the layoffs, Intel has reduced its research and development budget by hundreds of millions of dollars compared to the previous year, despite an increase in revenue. This decision reflects the company’s new focus on projects with clear returns and more immediate profitability.
These measures — staff reductions and resource reallocation — demonstrate Intel’s effort to adapt to a far more competitive environment and concentrate on strategic priorities.
However, this deep restructuring raises questions about its impact on innovation and employee morale. Major changes like these can affect both productivity and team cohesion in the long run. Time will tell whether these decisions will have a positive outcome for the company or lead to further challenges.
