SANTA CLARA, CA - JANUARY 16: The Intel logo is displayed outside of the Intel headquarters on January 16, 2014 in Santa Clara, California. Intel will report fourth quarter earnings after the closing bell. (Photo by Justin Sullivan/Getty Images)
Santa Clara, California – Intel is preparing to lay off more than 20% of its workforce this week in a major effort to streamline operations and eliminate bureaucratic inefficiencies, according to a report by Bloomberg News on Tuesday.
The job cuts are part of a broader strategy under new CEO Lip-Bu Tan, who took the helm last month with a mandate to refocus the struggling tech giant on its engineering roots. The move signals a significant shift for the company, which has faced mounting challenges in recent years, including falling behind global competitors in semiconductor manufacturing and missing key opportunities in artificial intelligence.
Intel, which employed approximately 108,900 people at the end of 2024, has already undergone workforce reductions. Last August, the company announced it would cut 15% of its staff under then-CEO Pat Gelsinger. Gelsinger’s ambitious turnaround plan aimed to restore Intel’s dominance in chip manufacturing but failed to deliver the results the board expected, ultimately leading to his departure at the end of last year.
Tan’s leadership marks a new chapter for the Santa Clara-based company. According to Bloomberg, the upcoming layoffs are intended to help Intel shed layers of bureaucracy and accelerate its shift toward an engineering-led culture. The company is also reassessing its manufacturing and AI operations — two areas where it has recently lagged behind competitors like Taiwan’s TSMC and U.S.-based Nvidia.
Reuters reported last month that Tan was planning a sweeping overhaul of Intel’s core businesses, including its AI strategy. However, the company’s progress in AI remains uncertain. Intel recently relegated its Falcon Shores chips — once viewed as a potential competitor in the AI space — to internal testing, leaving the firm without a clear flagship product in the fast-growing market.
The layoffs come just days before Intel is scheduled to release its first-quarter earnings on Thursday. Investors and industry watchers are expected to scrutinize the report for further insight into Tan’s plans and how the company intends to navigate a competitive landscape that also includes growing risks from U.S.-China trade tensions and potential new tariffs.
Intel has not yet publicly commented on the reported layoffs.
