From Yahoo Finance: 2025-06-18 07:28:00

US tech giant Intel is planning to reduce its factory workforce by 15% to 20%, impacting manufacturing operations to address ongoing financial challenges. Layoffs are expected to start in July 2025, potentially affecting thousands of employees, following a previous reduction of 15,000 positions in 2024.

The layoffs are part of a broader strategy to streamline operations and enhance efficiency, with decisions based on investment priorities and employee performance. Intel’s recent challenges stem from declining sales, increased competition in PC and data center markets, and difficulties in developing advanced chips for AI applications.

Intel’s expansion plans have faced delays, including the postponement of its Ohio factory opening until 2030. The company received $7.9bn in federal subsidies, but much of this funding remains uncertain. In March 2025, Nvidia and Broadcom announced testing of Intel’s 18A process, potentially leading to contracts worth hundreds of millions.

Vice president Naga Chandrasekaran stated, “These are difficult actions but essential to meet our affordability challenges and current financial position of the company.” The layoffs will not include voluntary buyouts, and Intel aims to empower engineers to better serve customers and enhance execution.

Read more: Intel reportedly plans to cut factory workforce by up to 20%