Technology companies are increasingly investing in artificial intelligence and reduce costs at the same time. To do this, many are changing their business structure to increase efficiency. In the chip manufacturing industry, Intel has recently been losing ground to competitors — including IBM, NVIDIA, and Samsung. Until recently, it seemed that Intel represented the pinnacle of engineering and was the leader in the processor market. The reason for this situation is primarily a delay in the development of its own production processes. And this delay has already affected the company’s financial results — in the first quarter of 2025, Intel suffered losses. And now it is forced to cut thousands of jobs to survive in the new realities.
Amid these difficulties, the company decided to restart its processes. The competition in the semiconductor industry is getting tougher. The largest players are rapidly advancing in scale, reliability, and technological breakthroughs. Meanwhile, Intel is lagging behind in the AI chip and contract manufacturing segments. The company failed to keep up with the transition to modern technical processes — unlike TSMC and Samsung, which are already mass-producing chips according to 3 nm standards.
Due to delays in new products, Intel has lost momentum in both the consumer and corporate segments. Its artificial intelligence strategy also failed to deliver the expected results, both in terms of performance and developer support. At the same time, NVIDIA strengthened its leadership in the AI market.
Thus, in the first quarter of 2025, Intel’s revenue decreased by 3% year-on-year. At the same time, the company suffered a net loss of approximately $887 million. After such stunning financial results, Intel CEO Lip Bu Tan announced the company’s upcoming transformation and plans to simplify the management structure. This was followed by layoffs, and now the company has announced a new wave of cuts.
BREAKING: Intel, $INTC, has announced large layoffs, with over 5,500 employees being let go
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Intel’s CEO admitted that the company is no longer among the top ten semiconductor manufacturers. And to regain its position, it is preparing for mass layoffs in the United States. According to documentsIntel plans to lay off more than 5.5 thousand employees in the United States, according to the Worker Adjustment and Retraining Notification (WARN) program. California (1,935 positions) and Oregon (2,932 positions) will be the most affected. It also plans to cut 696 positions in Arizona.
Intel is not the only company taking similar restructuring and layoffs Microsoft, Google, and Meta have also cut staff and refocused investments on the development of artificial intelligence.
Source: wccftech
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