In April, Intel tried to announce layoffs with out saying layoffs. “We’ve not set any headcount discount goal,” Intel spokesperson Sophie Metzger told The Verge. However the firm has laid off thousands of employees since — and right now, within the firm’s Q2 2025 earnings, it has revealed that Intel will dramatically shrink on account of these layoffs. Intel says it would retreat from deliberate initiatives in Germany and Poland, finish its meeting and check operations in Costa Rica, and end 2025 with simply round 75,000 “core staff” in complete.
Intel employed 109,800 folks on the finish of 2024, of which 99,500 have been “core staff,” so the corporate is pushing out round 24,000 folks this 12 months — shrinking the whole firm by roughly one-quarter. (It has additionally divested different companies, shrinking the bigger group as effectively.)
Intel has had a presence in Poland since 1993, nevertheless, and the corporate did not say its R&D services there are closing. (Intel had beforehand pressed pause on the brand new Germany and Poland initiatives “by roughly two years” back in 2024.)
In Costa Rica, where Intel employs over 3,400 people, the corporate will “consolidate its meeting and check operations in Costa Rica into its bigger websites in Vietnam.” Intel spokesperson Sophie Metzger tells The Verge that over 2,000 Costa Rica staff will stay to work in engineering and company, although.
The corporate can be reducing again in Ohio: “Intel will additional sluggish the tempo of building in Ohio to make sure spending is aligned with market demand.”
It’s not clear if the layoffs will sluggish now that we’re over midway by way of the 12 months, however Intel states right now that it has already “accomplished the vast majority of the deliberate headcount actions it introduced final quarter to cut back its core workforce by roughly 15 p.c.”
Up to now, partially due to the $1.9 billion that Intel is incurring to do these layoffs and this restructuring, Intel remains to be dropping cash this quarter. It’s reporting a $2.9 billion loss on $12.9 billion in quarterly income (which is itself flat 12 months over 12 months). Amidst the continued AI growth, Intel’s information heart enterprise is just up 4 p.c year-over-year to $3.9 billion, whereas its PC chips are down 3 p.c to $7.9 billion. Intel’s foundry enterprise the place it does chipmaking for different clients is up 3 p.c to $4.4 billion.
The corporate says it’s on monitor to shrink its bills by $17 billion over the total 12 months, and that at the least certainly one of its next flagship laptop chips is on monitor, too: “The primary Panther Lake processor SKU stays on monitor to start delivery later this 12 months, with further SKUs coming within the first half of 2026.”
Creating…we’re listening to Intel’s earnings name and can add to this story if we hear something intriguing.