U.S. Chipmaker Intel Plans More Layoffs in Europe to Stay Afloat

Intel’s new CEO, Lip-Bu Tan, informed employees that the company aims to end the year with 75,000 core staff, excluding subsidiaries—a dramatic reduction from the 99,500 employees it had at the end of last year. That means 1 in 4 workers will lose their jobs in 2025.

In a memo to staff, Tan wrote:

“I know the past few months haven’t been easy. We’re making tough but necessary decisions to streamline the organization, improve efficiency, and increase accountability at every level.”

The company had previously announced a 15% workforce reduction, but now appears to be going 10% further, bringing total cuts to 25%.

And even that isn’t enough to stabilize the company.

Intel also plans to cancel previously planned projects in Germany and Poland, scaling back its European expansion plans.

Founded in 1968, Intel missed the technological shift to mobile computing triggered by the launch of the iPhone in 2007. Its challenges have grown in recent years with the rise of AI technologies, where rival Nvidia has taken the lead. Nvidia’s chips have become the core of the AI boom.

Today, Intel's market value stands at $98.7 billion, dwarfed by Nvidia’s $4.24 trillion.

Things are not looking good for Intel.

Source: Euronews