Intel is taking significant steps to reshape its organization and strategy in response to ongoing market challenges and the need to become a leaner, more competitive company.
As part of these efforts, the company is reducing its global workforce by approximately 15 percent, targeting an end-of-year headcount of around 75,000 employees, Intel CEO Lip-Bu Tan, said after announcing the financial result for Q2-2025.
Also read: Intel CEO’s letter to employees Lip-Bu Tan: Steps in the Right Direction
Much of this job reduction occurred in Q2-2025, including a simplification of the management structure, cutting the number of layers in half. These workforce changes are accompanied by broader organizational reforms aimed at eliminating bureaucracy, accelerating innovation, and driving cost efficiency. The return-to-office policy, set for September, is another measure designed to enhance collaboration and productivity.
Intel strategy
These job reductions are part of a larger transformation plan anchored in three strategic priorities.
First, Intel is repositioning its foundry business by tightening capital allocation and aligning factory expansion with confirmed customer demand. This includes canceling projects in Germany and Poland and consolidating operations in Costa Rica, with a focus on higher-capacity sites in Vietnam and Malaysia.
Second, Intel aims to regain market share in its core x86 business by revitalizing its client and server roadmaps, introducing more disciplined chip design processes, and reintroducing technologies like simultaneous multi-threading to close performance gaps.
Third, the company is refining its AI strategy to build a full-stack solution encompassing silicon, systems, and software, with a focus on inference and agentic AI. This strategic pivot will guide new investments and talent recruitment, ensuring future offerings are tightly aligned with customer needs.
Intel revenue
Intel posted second-quarter 2025 revenue of $12.9 billion, which was flat compared to the same period in 2024.
Revenue from Intel Products was $11.8 billion, down 1 percent. Within this, Client Computing Group revenue fell 3 percent to $7.9 billion. Data Center and AI revenue grew 4 percent to $3.9 billion. Intel Foundry revenue rose 3 percent to $4.4 billion. Revenue from all other segments increased 20 percent to $1.1 billion. These gains were offset by $4.4 billion in intersegment eliminations.
The semiconductor company posted a net loss of $2.9 billion, or $(0.67) per share, driven in part by $1.9 billion in restructuring charges and $800 million in impairment-related expenses. Intel targets $18 billion in gross capital expenditures for the full year.
TelecomLead.com News Desk
