As early as this week, Intel — one of the world’s largest semiconductor manufacturers — may announce job cuts exceeding 20% of its workforce, according to Bloomberg, citing sources familiar with the matter. The planned layoffs aim to streamline the company’s structure and help it adapt to the fast-evolving global economy.
A Second Wave of Cuts
This would mark another major round of layoffs for Intel. In 2024, the company already let go of 15,000 employees. It began the year with a workforce of 124,800 and ended with 108,900 — a clear sign that earlier reductions may not have gone far enough. Now, more than one in five employees could lose their jobs.
Under Pressure from Competitors
Intel’s troubles are not without cause. The company is under increasing pressure from Nvidia, which has surged ahead in the market through aggressive investment in AI-powered solutions, establishing itself as an undisputed industry leader. As Nvidia’s market share grows, Intel’s sales and profitability are shrinking.
Responsibility for reversing the trend now rests with Lip-Bu Tan, Intel’s new CEO since March. He has pledged to rebuild Intel’s engineering capacity and boost manufacturing flexibility to better meet customer needs. The company’s Q1 2025 earnings report, expected this Thursday, will serve as a litmus test for Tan’s restructuring plans.
German Factory Delayed — Corn Instead of Chips
Amid the workforce shakeup, another issue looms in the background — Intel’s delayed investment in Magdeburg, Germany. The U.S. chip giant had promised to build a €30 billion state-of-the-art factory on a 400-hectare plot. The German government pledged billions in subsidies, and Poland had also competed for the location. Despite signed agreements, construction hasn’t even started.
The site, once designated for advanced microchip manufacturing, is currently covered in… corn. At Intel’s request, the farmer managing the land planted grain to “keep the land in use” and prevent degradation. Officials from Saxony-Anhalt admit there are no clear guidelines moving forward. For now, the corn grows, and the factory plans remain stalled.
Source: Manager Plus
