Intel’s failure to swiftly adapt to shifting market demands — particularly in modernizing its chip manufacturing processes — has cost the company dearly. In Q1 2025, Intel reported a net income loss of roughly $887 million and a 3% year-over-year drop in product revenue. During the company’s April earnings call, CEO Lip Bu Tan acknowledged the urgent need for operational changes, signaling an overhaul aimed at cutting through organizational complexity. Shortly after, Intel began letting go of staff — with more layoffs on the horizon.
Fully aware that Intel no longer ranks among the top 10 semiconductor firms, leadership is now bracing for deeper workforce reductions in the U.S. Per recent Worker Adjustment and Retraining Notification (WARN) filings, Intel plans to lay off more than 5,500 employees nationwide. California and Oregon will be hit hardest, with 1,935 jobs being cut in California and 2,932 in Oregon. Arizona is also on the list, with 696 positions being eliminated.
Intel isn’t alone in facing these tough choices. Tech heavyweights like Microsoft, Google, and Meta have also made sweeping organizational changes — many tied to their aggressive pivot toward artificial intelligence and efforts to streamline operations and reduce costs.
