In a span of less than two years, Intel has implemented a series of layoffs, resulting in the dismissal of roughly 35,500 employees. Additionally, around 20,500 more positions are slated for elimination by the summer of 2025. This significant workforce reduction forms a crucial part of the company's restructuring strategy, which is being steered by the newly appointed CEO, Lip-Bu Tan.

During the second quarter of 2025, Intel reported over $1 billion in expenses related to "restructuring and reorganization." In the following third quarter, an extra $175 million was incurred. As of September 27, 2025, Intel's total employee count had dwindled to 88,400, marking a decrease of approximately 20,500 from the figure recorded on December 28, 2024.

The layoffs have cast a wide net, impacting not just the management ranks but also the engineering teams. In the third quarter of 2025, Intel made a substantial cut to its annual R&D budget, reducing it by $800 million.

Currently, Intel finds itself in a "right-sizing" phase. The company has set a target to keep its operating expenses at around $16 billion by 2026. To achieve this, it plans to prioritize high-return projects, exercise strict control over capital expenditures, consolidate overlapping projects, and focus its efforts on three core business areas.