After posting a record $19 billion loss in 2024, Intel is executing massive layoffs and shifting its strategy to focus on AI innovation and global foundry expansion under new leadership.
In a dramatic response to its worst financial performance on record, Intel has announced sweeping layoffs and a strategic pivot toward AI dominance. The company posted a staggering $19 billion loss in 2024, sending shockwaves through the tech industry and prompting a hard reset on its operational model.
News Source: Private Equity Lion, Intel Layoffs
21,000 Jobs Cut Worldwide
Intel is cutting up to 20% of its global workforce, impacting an estimated 21,000 employees. These layoffs span key locations:
- Austin, Texas: 110 jobs eliminated
- Oregon: 529 positions
- Santa Clara, California: 107 positions
- Chandler, Arizona: 172 positions
- Israel: 200 positions
This round of cuts follows earlier layoffs in October 2024, where Intel shed 251 roles in Austin alone.
Behind the $19B Loss
Several key factors contributed to Intel’s financial collapse:
- Sharp decline in AI chip and client computing revenue
- Missed opportunities in automotive and edge computing markets
- Aggressive competition from NVIDIA, AMD, and TSMC
- Delays in advanced chip manufacturing, including Intel’s 18A process node
Strategic Overhaul Under New Leadership
With Lip-Bu Tan taking the reins as CEO in March 2025 (replacing Pat Gelsinger), Intel is repositioning itself for long-term competitiveness:
- Becoming “leaner, faster, and more efficient”
- Streamlining manufacturing operations and reducing corporate complexity
Outsourcing marketing to Accenture
Outsourcing marketing to a third-party agency frees HR resources, time, and focus. Refocusing on AI innovation and foundry services, aiming to become the world’s No. 2 chip foundry by 2030.
Looking Ahead
This isn’t just a cost-cutting campaign—it’s Intel’s bid to reinvent itself. The pivot toward AI chips and fabrication services could reshape the company's place in a rapidly evolving tech landscape.
