Tech layoffs: Intel expects to shrink workforce to 75,000 by year end

Intel announced on Thursday that it plans to have a headcount of 75,000 by the end of this year, after reducing its workforce by approximately 31% from the 108,900 employees it had at the end of last year, according to media reports.

Intel layoff details

Back in April, Intel had already flagged the need to cut costs. The company stated it would lower its annual operating expenses for this year to $17 billion, down from the earlier planned $17.5 billion, with the goal of reaching $16 billion by 2026.


Since then, Intel says it has already trimmed its headcount by around 15%, affecting approximately 15,000 roles. These cuts follow a similar reduction last year, which also impacted over 15,000 employees.

Also Read: Intel to lay off more than 5,500 employees in US in latest round of job cuts

What did Intel CEO say?

In a memo to staff, CEO Lip-Bu Tan acknowledged the difficulty of the current period. He wrote: “I know the past few months have not been easy. We are making hard but necessary decisions to streamline the organisation, drive greater efficiency and increase accountability at every level of the company.”

The company also revealed that it is cancelling plans to build new factories in Germany and Poland. In the US, it is slowing construction at a site in Ohio and consolidating its Costa Rica operations into larger facilities in Vietnam and Malaysia.

Also Read: Intel's chip contracting plan in spotlight on earnings day

The update came alongside Intel’s second-quarter financial results, where it posted a $2.9 billion net loss due to restructuring charges. Revenue was almost flat at $12.9 billion, but exceeded analyst expectations.

Intel also expects a loss in the upcoming quarter, with revenues projected to range between $12.6 billion and $13.6 billion. The midpoint of $13.1 billion is slightly above analysts’ average forecast of $12.6 billion for the quarter ending in September.