Intel to cut over 20 pc jobs amid restructuring drive by new CEO: Report
Intel CEO Lip-Bu Tan, who took charge in March 2025, is determined to streamline operations and revive Intel’s competitive edge, especially against AI chip leader Nvidia
Chip-maker Intel is reportedly poised to lay off over 20 per cent of its global workforce in a dramatic restructuring push led by its new CEO, Lip-Bu Tan.
According to a Bloomberg report, the move is part of Tan’s broader strategy to eliminate bureaucratic inefficiencies and rebuild a robust, engineering-centric culture within the company.
Tan, who took charge in March 2025, is determined to streamline operations and revive Intel’s competitive edge, especially against AI chip leader Nvidia.
His vision includes spinning off non-core units and refocussing on innovative, customer-aligned product development.
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Mass job cuts
This round of layoffs is expected to surpass the 15 per cent workforce reduction Intel executed in August 2024, which affected 15,000 employees. By the end of that year, Intel’s employee strength stood at 108,900 — a sharp drop from 124,800 in 2023.
This week's anticipated cuts will be the first major move under Tan and reflect his urgent push to realign the company’s structure.
CEO's vision
In recent weeks, Intel has begun executing Tan’s vision. The company sold a 51 per cent stake in its programmable chip division, Altera, to Silver Lake Management.
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Tan also flattened the leadership hierarchy, enabling direct reporting from key chip divisions to his office.
Tan emphasised at the Intel Vision conference that the company must rebuild lost engineering talent, improve its balance sheet, and streamline its manufacturing approach.
He warned employees early on that “tough decisions” were imminent.
Focus on AI
Intel has reported declining sales for three consecutive years and has lagged behind in AI chip development.
Tan’s restructuring, with a renewed focus on product innovation and operational efficiency, aims to reclaim Intel’s position as a chip industry leader.
Also Read: In fresh wave of layoffs, 27,000 techies lose jobs in August: Report
Intel is scheduled to release its Q1 2025 earnings on April 24, a day that could shed more light on the impact and scope of these drastic reforms.
