Intel plans to lay off 15% of its workforce and cancel billions in new chip facility projects in Europe as part of a strategy shift aimed at reviving its business. The company will concentrate on the competitive AI chip market, regain market share in personal-computer processors, and advance its 14A technology for major clients.

Intel's CEO has stated that the company has fallen behind in the competitive AI landscape, claiming it is too late for Intel to catch up. Additionally, Intel has dropped out of the top 10 semiconductor companies as it faces significant layoffs globally.

Intel has significantly reduced its workforce by 35,500 jobs in under two years, with over 20,000 layoffs occurring recently under CEO Lip-Bu Tan's leadership. This restructuring effort aims to align the company with market realities and has involved substantial cuts to research and development budgets, as well as a focus on high-return projects. Despite these challenges, Intel reported a return to growth and profitability in Q3 2025, although it continues to navigate a complex corporate environment.