- Intels reports, 20% cut, 22k positions from 108,900
- In 2024, Intel already cut 15k positions
- Despite Q1 $12.7 Bn revenue & $12.82Bn Q2
- Jobs replaced with A.I.
- UPS reports, 20k cut & closing 164 locations starting June
- Why? $21.5Bn revenue, Last year $21.7Bn
- UPS no Longer a MAJOR Amazon Deliverer (11.8% Revenue)
- Cuts will save $3.5Bn in 2025
Tech and Delivery Giants Face Turbulence: Intel Slashes 22,000 Jobs, UPS Cuts Amazon Deliveries and Closes Facilities. Two corporate heavyweights—Intel and UPS—are making headlines with major restructuring moves, signaling tough times ahead for workers, investors, and even trade policy debates. Intel’s planning to lay off up to 22,000 employees, while UPS is slashing deliveries for Amazon and closing 164 facilities. Here’s the full breakdown of these seismic shifts and their ripple effects.
Intel: Mass Layoffs and a Rocky Road to AI
The Cuts: 22,000 Jobs on the Line
On Wednesday, Bloomberg reported that Intel is preparing to lay off up to 20% of its workforce—roughly 22,000 people from its 108,900 employees as of late 2024. This follows a prior round of 15,000 job cuts announced in August 2024 by then-CEO Pat Gelsinger. Intel’s new CEO, Tan, confirmed the layoffs in an email to employees on April 24, 2025, later published on Intel’s website.
In the email, Tan outlined his vision to transform Intel into an engineering-focused company to reclaim its edge in the chip market and spark innovation. “In order to refocus the company on engineering, Tan said, Intel would need to remove its organizational complexity and unnecessary bureaucracy,” leading to what he called “Flattening the Organization.” He added, “I was a big believer in the philosophy that the best leaders get the most done with the fewest people,” admitting, “There was no way around the fact that these critical changes will reduce the size of our workforce.”
Financial Woes: Stock Plummets
Intel’s troubles extend beyond layoffs. After releasing its Q1 2025 earnings on Wednesday, Intel’s stock (Nasdaq: INTC) tanked, dropping 6.7% in premarket trading to just above $20 per share. The company reported $12.7 billion in revenue—flat year-over-year—and a 19-cent-per-share loss. But the real blow was Intel’s Q2 forecast: revenue guidance of $11.2 billion to $12.4 billion, well below analysts’ average estimate of $12.82 billion, per Reuters.
Investors see this as a sign that Intel’s turnaround will drag. The company, widely viewed as having fumbled the AI boom earlier this decade, ceded AI chip dominance to Nvidia. Tan aims to make Intel an AI chip juggernaut, but the guidance suggests that’s a long-term play—not happening next quarter. Until Wednesday, Intel’s stock was up 7.18% for the year, closing at $21.49. Post-drop, it’s now flat year-to-date.
UPS: Slicing Amazon Deliveries, Closing 73 Facilities
Scaling Back on Amazon
UPS, the world’s largest package delivery firm, is reshaping its network, starting with a sharp cut in deliveries for its biggest customer, Amazon.com, which accounted for 11.8% of UPS’s 2024 revenue. In January, UPS warned it was fast-tracking this plan. Brian Dykes, UPS’s chief financial officer, told USA TODAY: “We are reducing the amount of volume we deliver for Amazon by more than 50% by June 2026. Associated with this volume reduction, we are undertaking the largest network reconfiguration in our history. This effort has been combined with our Network of the Future initiative as both will help drive us to a more efficient network.”
Dykes added, “UPS’s planned reductions are in line with the total Amazon volume decline.”
Facility Closures and Cost Savings
UPS isn’t stopping there. By June 2025, it plans to close 73 leased and owned buildings, part of its U.S. Ground operation where packages are sorted and loaded, with a total of 164 closures expected by year-end, per the earnings report. “We are continuing to review our network and may identify additional buildings for closure,” a UPS spokesperson told USA TODAY.
These moves—job cuts and closures—are projected to save $3.5 billion in 2025, part of UPS’s “Network Reconfiguration and Efficiency Reimagined” initiative, set to wrap by 2027. In January, UPS forecasted $89 billion in full-year revenue, per CNBC.
Tariff Tensions
The cuts come amid trade policy friction. On April 29, 2025, White House press secretary Karoline Leavitt blasted Amazon after reports it planned to list Trump’s tariff costs next to product prices. Leavitt called it “a hostile and political act” while speaking to reporters, highlighting tensions as UPS’s Amazon pullback aligns with broader economic shifts.
Why It Matters
Intel’s 22,000 layoffs and UPS’s facility closures signal tough choices in tech and logistics. Intel’s betting on an AI-driven future but faces investor skepticism and a long climb to catch Nvidia. UPS, streamlining to save $3.5 billion, is rethinking its Amazon reliance as tariffs stir controversy. Both moves reflect a volatile moment—workers lose jobs, stocks wobble, and trade policies loom large. Will these giants pivot successfully, or are more cuts coming?
Sources
- https://www.intel.com
- https://www.bloomberg.com
- https://www.ups.com
- https://www.aboutamazon.com/news
- https://blogs.nvidia.com/blog/mega-omniverse-blueprint/
Author, Ryan Bridglal, 04/29/2025
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