Intel fires up major layoffs, leadership shakeup, and strategic spin-offs in 2025.
The issue started back in March when Intel tapped Lip-Bu Tan as CEO, pledging a sharpened engineering focus. Since then, Tan wasted no time shaking things up.
In April, Intel announced plans to spin off non-core assets and launch new custom chips. The company reportedly aimed to offload networking and edge units responsible for $5.4 billion in revenue. 
Layoffs are hitting hard. Back in April, Intel revealed plans to cut over 21,000 jobs to streamline management. In June, the cuts zeroed in on the Intel Foundry staff with 15-20% of workers set to be laid off by July.
Leadership sees a big reboot too. On June 18, Intel named four new leaders, including a chief revenue officer and top engineering hires. The goal: reclaim Intel’s legacy as an engineering-first company.
Nvidia is reeling from U.S. AI chip export restrictions. They took a $4.5 billion hit in Q1 tied to licensing rules on their H20 AI chips. The damage is expected to reach $8 billion in Q2. In June, Nvidia’s CEO Jensen Huang said future financial forecasts won’t include China due to ongoing export limits.
AMD is doubling down on AI hardware muscle with talent and tech buys. In May, AMD acquired silicon photonics startup Enosemi, betting on light-based data transmission. Then early June saw AMD pick up Untether AI’s team, specializing in AI inference chips. Shortly after, AMD snapped up Brium to aid AI software optimization for non-Nvidia hardware.
Tensions between the U.S. and China keep bubbling. In May, China threatened legal action over U.S. export rules banning Huawei AI chips worldwide. The Biden administration scrapped its AI Diffusion export rule just before it was set to start.
Key moments recap:
- March 12: Lip-Bu Tan named Intel CEO, promises engineering focus.
- April: Intel plans to spin off non-core units, launch custom chips.
- April 22: Intel announces 21,000 layoffs.
- May 13: Biden’s AI Diffusion export rule rescinded by Dept. of Commerce.
- June 17: Intel starts Intel Foundry layoffs, 15-20% cuts planned.
- June 18: Intel appoints four new leaders, including a CRO.
- Nvidia hit with heavy export losses; stops reporting China revenue.
- AMD acquisitions: Enosemi, Untether AI team, Brium.
This year’s semiconductor moves reflect a brutal battleground for AI chip domination, with industry giants cutting staff, trimming assets, and navigating shifting U.S.-China trade policies.
