Intel Corporation is preparing to cut more than 21,000 jobs this week—around 20% of its current workforce—as newly appointed CEO Lip-Bu Tan begins implementing a sweeping restructuring plan, according to a Bloomberg report.
The cuts come less than a year after Intel laid off 15,000 employees in a previous cost-saving round. As of late 2024, Intel’s workforce stood at 108,900, down from 124,800 in 2023. This latest move marks the first major shakeup under Tan, who took over leadership last month following the departure of Pat Gelsinger.
Tan, former CEO of Cadence Design Systems, is known for bold strategic overhauls and has been vocal about Intel’s need for a reset.
Facing mounting pressure from competitors—particularly Nvidia, which has surged ahead in the AI chip market—Intel is aiming to reposition itself after years of declining market relevance.
Just last week, Intel sold a 51% stake in Altera, its programmable chip division, to private equity firm Silver Lake, signalling a shift in focus under Tan’s leadership.
He has emphasised rebuilding engineering talent, overhauling manufacturing processes, and restoring the company’s financial health.
Intel will report its first-quarter earnings on Thursday, offering Tan his first opportunity to present a clearer picture of the company’s direction moving forward.
Tan inherits a company that once dominated the semiconductor industry but has struggled in recent years.
Under Gelsinger, Intel attempted to reposition itself as a major player in contract chip manufacturing, similar to TSMC, but the efforts stalled. A planned mega-facility in Ohio is currently on hold, and partnerships with key players like TSMC have lost momentum.
Intel also failed to gain early traction in the rapidly growing AI chip market, allowing Nvidia to seize dominance and become the world’s most valuable chipmaker.
In his first public address as CEO, Tan acknowledged the uphill battle and stressed that the turnaround “won’t be quick or easy.” However, the sweeping layoffs and early moves suggest he is prepared to make tough decisions to get Intel back on track.
Intel’s announcement adds to a growing list of tech sector layoffs in 2025, as companies adapt to shifting economic conditions and intensifying industry competition.
Just last week, Google—owned by Alphabet Inc.—laid off hundreds of employees from its Platforms and Devices division, impacting teams responsible for Android, Pixel phones, and the Chrome browser.
The company attributed the move to ongoing restructuring and an effort to streamline operations following internal team mergers and a voluntary exit programme earlier this year.
