Intel's current CEO Chen Liwu announced a large-scale layoff plan in his first statement the day after taking office. He said the move was necessary to keep the company in line with market realities. The exact scale of these measures can now be assessed.
According to sources, Intel laid off approximately 20,500 employees within three months. If you add in the 15,000 people laid off during the previous management period, you can see that about 35,500 Intel employees have left in less than two years. As of December 28, 2024, the company had a total of 108,900 employees, including thousands of former Altera employees who are now part of an independent company controlled by Intel and controlled by Silver Lake Capital.
Intel's latest filing with the U.S. Securities and Exchange Commission shows that as of September 27, 2025, the company had a total of 88,400 employees, including 83,300 at Intel and 5,100 at Mobile and other subsidiaries. This means that 20,500 people have left the company under Chen Liwu's leadership. The layoffs were mainly concentrated in the second quarter, and restructuring costs incurred during the same period reached more than US$1 billion; by the third quarter, restructuring costs dropped to US$175 million.
Although Intel's CEO initially said that the restructuring plan was aimed at reducing the number of middle managers, it was ultimately revealed that the company was laying off thousands of engineers and technicians working at the Oregon factory. However, of all the layoffs at the Oregon plant, only 8% had a job title with the word "manager" in it; the rest were engineers or technical specialists working in support roles.
Intel's latest financial report for the third quarter of this year shows that despite revenue growth, the company's annual research and development budget has been cut by more than $800 million. This shows that Intel has terminated a number of projects and plans in various stages of implementation in recent months. In video conferences with investors, Intel management repeatedly emphasized that the company is still in the operational optimization stage. Specific measures include cutting costs, focusing available resources on high-margin projects, and maintaining strict financial discipline.
Intel Chief Financial Officer David Zinsner told analysts that the company plans to control operating costs to about $16 billion in 2026 and invest funds only in projects with clear strategic returns or financial returns. Such projects include: starting production using Intel's 18A process technology, developing 14A process technology, developing products related to the artificial intelligence field, and developing chip packaging technology.
Sources quoted Zinsner as saying: "We are focused on optimizing the company's structure to ensure long-term profitability. Operating costs will remain basically stable next year, and we will only invest in areas where we clearly see customer needs. We will continue to work hard to improve the efficiency of each department to ensure that Intel maintains its cost advantage and competitiveness."
At the same time, Intel management emphasized that the company will only invest in new projects or build new production facilities if it anticipates customer interest or has confirmed demand for a specific product. This means companies will curb headcount growth and strictly control spending on capital projects. In addition, management noted that "the new Intel will focus on cost control rather than pure cost cutting."
Sources quoted Chen Liwu as saying: "Today's Intel is leaner, more responsive, and more focused. We have streamlined repetitive projects and prioritized resources in the most revenue-generating business areas: customer solutions, data center and artificial intelligence, and semiconductor manufacturing. We are building a leaner and stronger Intel."