By Barbara Ortutay
Intel Corp. has helped new CEOs launch Silicon Valley, but Nvidia Corp. and Advanced Micro Devices Inc.
In a memo to employees Thursday, CEO Lip-Bu Tan said Intel plans to finish the year with 75,000 “core” workers excluding subsidiaries through layoffs and attrition. This is down from the 99,500 core employees at the end of last year. The company previously announced a 15% reduction in workforce.
“We know that the past few months have not been easy. We are making the necessary decisions that are difficult to streamline our organization, promote greater efficiency, and increase accountability at all levels of our company,” Tan writes.
Additionally, Intel will discard previously planned projects in Germany and Poland, moving assembly and test operations in Costa Rica to larger sites in Vietnam and Malaysia. Costa Rica will continue to be “home to key engineering teams and corporate functions,” Tan said in a memo.
In the US, the company said it would “even more” and “even more” slower construction of its Ohio semiconductor factory.
Founded in 1968 at the start of PC Revolution, Intel has missed the technological shift to mobile computing triggered by Apple’s 2007 iPhone release, slowing down the lighter chip maker. Intel troubles have been expanding since the advent of artificial intelligence. It is a booming area where chips made by former horse rival Nvidia become the hottest high-tech commodity.
The Santa Clara-based company, based in California, had a market capitalization of $987.1 billion at the time of market shutdown Thursday, compared to NVIDIA’s $4.24 trillion.
Tan said Intel is focused on providing “core product portfolio” and artificial intelligence, providing services that are suitable for its customers.
“There are no more blank checks,” Tan wrote. “Every investment needs to make economic sense.”
In the second quarter, Intel reported a loss of $2.9 billion, or 67 cents per share, from a loss of $1.6 billion (38 cents per share) a year ago. Excluding one-off items, the company recorded a loss of 10 cents per share.
Revenues remained flat at $12.9 billion. Analysts, on average, expected an adjustment of $12 billion for their cent per share of adjusted earnings.
Original issue: July 25th, 2025, 4:15pm EDT
