Intel Corporation is set to announce plans this week to reduce its workforce by more than 20%, marking a significant restructuring under the leadership of newly appointed CEO Lip-Bu Tan. This move aims to streamline operations, eliminate bureaucratic inefficiencies, and rebuild an engineering-driven culture at the struggling semiconductor giant.
The layoffs, expected to affect over 21,000 employees globally, come less than a year after Intel cut approximately 15,000 jobs as part of a $10 billion cost-reduction initiative for 2024. At the end of last year, Intel’s workforce stood at around 108,900, down from 124,800 the previous year. The upcoming cuts represent one of the most substantial workforce reductions in the company’s history.
Lip-Bu Tan, who took over as CEO in March 2025, is focused on revitalizing Intel after years of declining sales, rising losses, and loss of market share to competitors such as Nvidia and AMD. The company has struggled to keep pace in areas like artificial intelligence chip manufacturing, contributing to three consecutive years of revenue decline.
According to insiders, the layoffs are part of Tan’s broader strategy to simplify Intel’s management structure and refocus the company on its core engineering strengths. This includes divesting non-core assets and improving manufacturing efficiency to better meet customer demands. Recently, Intel agreed to sell a majority stake in its programmable chips division, Altera, signaling a shift toward more focused operations.
The company’s first-quarter earnings report, scheduled for release shortly, is expected to provide further details on the restructuring plan and financial outlook. Analysts suggest that while Intel may have passed the worst of its revenue declines, a full recovery could take several years.
Tan’s predecessor, Pat Gelsinger, initiated an ambitious expansion of Intel’s manufacturing capacity, but many of those plans have been delayed or scaled back amid financial pressures. Tan’s approach emphasizes cost control and engineering innovation to regain competitiveness.
This workforce reduction reflects the challenges Intel faces in adapting to a rapidly changing semiconductor landscape and the urgency to reinvent itself as a leaner, more agile company.
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