Intel to Cut Over 20% of Workforce in Cost-Saving Restructuring Under New CEO

Intel Corp. (NASDAQ: INTC) is preparing to lay off more than 20% of its workforce this week, Bloomberg News reported, citing sources familiar with the matter. The move is part of a broader effort by new CEO Lip-Bu Tan to streamline operations, eliminate inefficiencies, and refocus on engineering excellence.

This marks the first major restructuring since Tan took the helm last month. Under his leadership, Intel is pursuing aggressive changes to regain competitiveness in the semiconductor industry, particularly in AI chip development where it trails rivals like Nvidia (NASDAQ: NVDA). In a recent town hall, Tan told employees that “tough decisions” were needed to address the company’s slow and bureaucratic management structure.

Intel is also flattening its organizational hierarchy, with key chip divisions now reporting directly to the CEO, according to sources. These layoffs follow last August’s workforce reduction of 15,000 jobs, representing 15% of the company’s staff. The company had 108,900 employees at the end of 2024, based on regulatory filings.

The job cuts are part of Intel’s $10 billion cost-reduction initiative for 2024. The company is aiming to address high operational costs, thinning margins in its PC and data center businesses, and the substantial investment required for its shift toward AI-driven technologies.

Intel’s transformation strategy comes as it struggles to keep pace with a rapidly evolving semiconductor market. With its first-quarter earnings set to be announced Thursday, investors and analysts are closely watching how these changes will impact the company’s financial and technological outlook.

Intel has yet to officially comment on the reported layoffs.