Intel is undergoing significant changes after facing intense competition and challenges in recent years. The transition began when Apple opted for its M-series chips, followed by AMD gradually gaining ground in the PC sector. Now, with increasing pressure from Arm-based competitors and AI leaders like Nvidia, Intel is in a position where it must rapidly reinvent itself. In its Q2 2025 earnings report, Intel illustrated a comprehensive overhaul rather than just a temporary setback.
Under the new leadership of CEO Lip-Bu Tan, the company is implementing drastic cost-cutting measures, which include substantial layoffs and the postponement or cancellation of key manufacturing projects. Intel’s workforce, which numbered nearly 110,000 at the close of 2024, is expected to shrink to approximately 75,000 by the end of 2025—a reduction of about 25%. This follows a previous cut of 15,000 jobs in the prior year. As part of this restructuring, Intel is divesting from high-profile initiatives such as the chip factory in Germany and an assembly plant in Poland, projects that have been stalled for some time.
Furthermore, the previously anticipated $28 billion factory in Ohio has been delayed once more due to what Intel describes as “unwise and excessive” investments in a market that hasn’t met its demand forecasts. Tan’s strategy moving forward is one of caution, focusing on producing chips only when there is a confirmed market demand. His hands-on leadership style includes personally overseeing every chip design process. This shift aims to minimize design errors and streamline operations.
The hope is that by fostering a more disciplined approach, Intel can ultimately regain its competitive edge. In the short term, consumers may experience delays or reductions in new Intel chip releases as the company consolidates its operations. Competition from Apple, AMD, and Qualcomm is expected to intensify during this period. However, if Intel’s transformative efforts succeed, there may be a brighter future with improved efficiency and reliability in their chip offerings.