Intel is reportedly preparing to lay off more than 20% of its global workforce this week as part of a sweeping effort to streamline operations and eliminate bureaucratic inefficiencies, according to a Bloomberg News report citing an insider familiar with the matter.
The job cuts are part of a broader organizational overhaul led by Intel’s newly appointed CEO, Lip-Bu Tan, who took the helm last month with a mission to restore the company’s engineering-first culture.
The restructuring aims to revitalize the struggling chip giant by flattening management layers and increasing operational agility.
Although Intel has not yet commented publicly, the strategic layoffs signal the first major move under Tan’s leadership. The former CEO of Cadence Design Systems, Tan has already hinted at significant changes to Intel’s chip manufacturing processes and artificial intelligence roadmap.
In a recent internal town hall meeting, Tan emphasized the need for “tough decisions” and criticized the company’s sluggish and bloated middle management. The latest cuts follow last year’s workforce reduction, when Intel announced a 15% job slash—about 15,000 roles—as part of a $10 billion cost-cutting initiative.
Intel, which had around 108,900 employees at the close of 2024, is facing mounting pressure from rising production costs, shrinking margins in its PC and data center businesses, and a costly transition into the AI chip market, where competitors like Nvidia continue to dominate.
The company is expected to release its Q1 2025 earnings report on Thursday, which may offer further insight into the scope of the restructuring and its impact on Intel’s future growth trajectory.
