Intel has been through the wringer lately. First, Apple dropped its chips in favor of the M-series. Then AMD started chipping away at its lead in the PC space. And now Arm-based rivals and AI giants like Nvidia are piling on the pressure. The result? A company that’s lost serious ground and is now being forced to reinvent itself – fast.
In its latest earnings report for Q2 2025, Intel revealed a massive shake-up that makes one thing very clear: this isn’t just a rough patch. It’s a full-blown overhaul.
Under new CEO Lip-Bu Tan, Intel is slashing costs and cutting loose anything that doesn’t serve its core mission. That means thousands of jobs are being cut, major manufacturing projects are being scrapped or delayed and the company is slimming down to focus on fewer, smarter moves.
Intel ended 2024 with nearly 110,000 employees. By the end of 2025, it expects to be down to just 75,000. That’s roughly a quarter of the company – gone. And it’s not the first time: Intel already cut 15,000 jobs last year.
The changes we are making to reduce our operating costs, improve our capital efficiency and monetize non-core assets are having a positive impact as we work to strengthen our balance sheet and position the business for the future.
– David Zinsner, Intel CFO, July 2025
Intel is also walking away from high-profile projects it once hyped up – including the chip factory in Germany and an assembly plant in Poland. Both had been stuck in limbo since last year, and now they’re officially off the table.
The $28 billion Ohio factory? Delayed again. It was supposed to open in 2025, then pushed back earlier this year, and now it’s on pause once more. Intel says its previous investments were “unwise and excessive,” admitting that it overbuilt in a market that didn’t deliver the demand it hoped for.
Which chip brand are you most excited about for your next laptop?
Apple (M-series).
19.23%
AMD (Ryzen).
42.31%
Qualcomm (Snapdragon X).
23.08%
Intel.
15.38%
Other.
0%
Unfortunately, the capacity investment we make over the last several years were well ahead of demand and were unwise and excessive. Our factory footprint has become needlessly fragmented. Going forward, we will grow our capacity based solely on the volume commitments and deploy capex lockstep with the tangible milestones, and not before.
– Lip-Bu Tan, Intel CEO, July 2025
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So, Tan is now taking a more conservative approach: no new capacity unless the orders are already there. In other words, Intel isn’t going to build chips and hope someone buys them. It’s only going to build what it knows it can sell.
And Tan isn’t just making high-level strategy changes. He’s stepping in to approve every chip design himself – yes, really. The former Cadence CEO has a long background in chip design, and he’s already making moves to fix issues like Intel’s recent missteps with multi-threading capabilities.
The goal is to return to a “first time right” mindset – fewer design mistakes, tighter execution, and a more focused roadmap. If Tan can pull that off, future Intel chips might actually get more competitive again.
Meanwhile, Intel’s Core Ultra (Series 2) with vPro continues to expand, delivering powerful, efficient and secure performance for desktops and laptops. | Image credit – Intel
So, how does this all affect the laptops you’ll be shopping for in the next year or two?
In the short term, you might see fewer new Intel chips, slower refresh cycles, or even some gaps in the lineup as the company consolidates and retools. Meanwhile, competitors like Apple, AMD, and Qualcomm will likely keep charging ahead – especially as Arm-based and AI-focused chips keep gaining traction.
But if Intel’s reset works, we could be looking at even better chips down the road – ones that are more efficient, more reliable, and designed with fewer compromises.
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Tsveta, a passionate technology enthusiast and accomplished playwright, combines her love for mobile technologies and writing to explore and reveal the transformative power of tech. From being an early follower of PhoneArena to relying exclusively on her smartphone for photography, she embraces the immense capabilities of compact devices in our daily lives. With a Journalism degree and an explorative spirit, Tsveta not only provides expert insights into the world of gadgets and smartphones but also shares a unique perspective shaped by her diverse interests in travel, culture, and visual storytelling.
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