Intel will cut 24,000 employees and shut down projects in Germany, Poland and Costa Rica

American corporation Intel has announced a major restructuring that will see around 24,000 employees leave the company by the end of 2025. At the same time, the manufacturer will abandon investment projects in Germany and Poland, as well as curtail some operations in Costa Rica. This became known from the report for the second quarter of 2025.

Intel confirmed a quarter staff reduction

At the end of 2024, Intel will have 109,800 employees, of which 99,500 are in the “core employees” category. By the end of 2025, the company will have about 75,000 “core employees,” a reduction of about 24,000 people – a nearly 25% reduction. In doing so, Intel is implementing one of the biggest optimization plans in recent years.

Although the company said in April that it had “not set a headcount target,” the layoffs have already affected thousands of employees. Intel shut down its automotive business in June and spun off its RealSense division in July. At the same time, it announced plans to lay off up to 20 percent of factory workers.

Intel pulls back on investments in Germany and Poland

According to a statement, Intel is finally halting development of projects in Germany and Poland that were previously put on pause for two years. There were plans to build so-called “mega-factories” with up to 3,000 employees in Germany and an assembly and test center with 2,000 jobs in Poland. These initiatives have now been canceled altogether.

The company nevertheless emphasizes that it will continue to operate in Poland, where it has been present since 1993, and has no plans to close the existing R&D centers in the country.

Consolidation in Costa Rica and construction slowdown in the U.S.

In Costa Rica, Intel will close assembly and test facilities, moving those processes to larger sites in Vietnam. Despite this, about 2,000 employees in engineering and corporate divisions will keep their jobs. In total, Intel employs more than 3,400 people in the country.

The corporation will also reduce the pace of construction on a new manufacturing facility in Ohio. According to Intel CFO David Zinsner, investment in the region will continue, but will be matched to market demand.

Intel’s chief financial officer, David Zinsner, said the company will continue to invest in the region.

Financial results and product plans

Restructuring and layoff costs totaled $1.9 billion, which was one of the reasons for Intel’s quarterly loss of $2.9 billion on revenue of $12.9 billion. Server sales rose 4% to $3.9 billion, while PC chip revenue declined 3% to $7.9 billion. The foundry business posted a 3% increase to $4.4 billion.

Despite the current challenges, Intel expects to save $17 billion by cutting costs over the course of the year. The company also confirmed the release schedule for the new processors. The Panther Lake series will go on sale in late 2025, and the Nova Lake lineup in late 2026. Intel CEO Lip-Bu Tan personally oversees each design phase of the new chips and approves the architecture before reaching the tape-out stage.

In addition, Intel is ramping up production of Lunar Lake processors, previously considered expensive. The company has promised to reveal new leadership for its server division and details of its AI strategy in the next quarter.

The company has also promised to unveil a new server division and AI strategy in the next quarter.

The Intel will cut 24,000 employees and shut down projects in Germany, Poland and Costa Rica was first published on ITZine.ru.