Intel Reportedly Planning Over 20% Workforce Cut

Intel is preparing to announce a significant workforce reduction—cutting more than 20% of its global staff—as part of a sweeping plan to eliminate internal inefficiencies and streamline decision-making processes, according to sources familiar with the matter.

This major restructuring marks the first bold move by Intel's newly appointed CEO, Lip-Bu Tan, who took the helm last month. The initiative aims to simplify corporate management and reestablish a strong engineering-driven culture at the company.

This comes on the heels of a previous layoff of approximately 15,000 employees announced in August last year. By the end of 2024, Intel's total headcount had declined to 108,900, down from 124,800 a year earlier.

Lip-Bu Tan, a seasoned semiconductor executive and former Cadence leader, has set a clear goal: revitalize Intel's competitive position in the semiconductor industry. The company, headquartered in Santa Clara, California, has been steadily losing market share and its technological lead, particularly in high-performance and AI computing, where competitors like NVIDIA have surged ahead. As a result, Intel has faced three consecutive years of declining revenue and growing losses.

Tan has pledged to divest non-core assets and refocus the company's efforts on innovation and product leadership. Last week, Intel made a strategic move by agreeing to sell a 51% stake in its programmable chip unit, Altera, to Silver Lake Management—signaling its commitment to restructuring.

Speaking at the Intel Vision Conference last month, Tan emphasized the need to rebuild its engineering workforce, improve the balance sheet, and optimize manufacturing processes to better align with evolving customer demands.

Intel is scheduled to release its Q1 financial results this Thursday, offering deeper insights into the company's transformation strategy under new leadership.