Intel rapidly advances its layoff plan: management will be streamlined by 50% and employees will be reduced to 75,000 by the end of the year

Intel CEO Chen Liwu issued a letter to all employees on July 24, saying,The company is advancing a layoff plan involving about 15% of its employees, and it is expected that the global workforce will be reduced to 75,000 by the end of 2025.Chen Liwu said that Intel completed large-scale layoffs in the second quarter and streamlined its management level by nearly 50%. "We are also expected to implement a resumption policy in September, and each factory will complete necessary improvements to achieve full capacity operations."

After Intel released its financial report for the first quarter of fiscal year 2025, which showed that its net loss expanded 115% year-on-year to US$800 million, Chen Liwu planned to launch a comprehensive transformation plan including 10,000 layoffs, organizational restructuring, and budget compression.

Intel’s new CEO Chen Liwu has emphasized many times thatIntel needs to streamline operations, reduce layers of management, and accelerate the deployment of new technologies. Chen Liwu also said he hopes to retain and recruit more top engineers.

The financial slimming plan is even more stringent: operating expenses will be cut by a total of US$1.5 billion in the next two years, with the budget compressed to US$17 billion in 2025 and further reduced to US$16 billion in 2026, the largest reduction in history.