Intel is reportedly preparing for a significant reduction in its workforce, with announcements expected this week, according to a Bloomberg report. The planned cuts could affect over 20% of its global workforce, potentially impacting more than 20,000 employees. This move marks a major restructuring effort under the leadership of newly appointed CEO Lip-Bu Tan, who took the helm in March 2025.
The primary goal of the workforce reduction is to streamline operations, eliminate bureaucratic inefficiencies, and rebuild an engineering-driven culture within the company. Tan has expressed his desire to create a "new Intel" by addressing organizational complexity and cumbersome processes that have hindered the chipmaker's progress. This restructuring aligns with Tan's broader strategy to refocus Intel on its core business areas, including advanced chip design and manufacturing, while scaling back on less profitable ventures.
This potential workforce reduction follows a previous layoff announcement in August 2024, when Intel revealed intentions to cut approximately 15,000 positions. These earlier job cuts were part of a broader $10 billion cost-reduction initiative aimed at addressing high operational costs, declining margins in Intel's core PC and data center segments, and the expensive transition to AI chip production. As of the end of 2024, Intel employed around 108,900 individuals.
The timing of this announcement coincides with Intel's upcoming release of its first-quarter 2025 financial results. In January 2025, Intel reported its fourth-quarter and full-year 2024 results, forecasting first-quarter 2025 revenue of $11.7 billion to $12.7 billion. The company is expecting a first-quarter loss per share of $0.27.
Tan's appointment as CEO signals a strategic shift for Intel, as he aims to revitalize the company and regain its competitive edge in the semiconductor industry. He has acknowledged the challenges facing Intel, including lagging innovation and a failure to keep pace with rivals in key areas such as artificial intelligence. As part of his turnaround plan, Tan has vowed to spin off Intel assets that are not central to its mission and create more compelling products. The company has already taken steps in this direction, including an agreement to sell a majority stake in its programmable chips unit, Altera, to Silver Lake Management.
