Intel is preparing for one of the largest layoffs in its history, with plans to cut over 21,000 jobs—nearly 20% of its global workforce. The move, reportedly set to be announced ahead of the company’s first-quarter earnings call this week, marks the first major shake-up under new CEO Lip-Bu Tan, who took over leadership from Pat Gelsinger in late 2024.
This drastic measure comes as Intel struggles to regain its competitive edge in the semiconductor market. The job cuts are part of a broader restructuring plan designed to streamline operations, reduce bureaucracy, and sharpen the company’s focus on engineering innovation. Intel’s core businesses in PCs and data centers have faced margin pressure amid increasing investments in AI chip development, where rivals like Nvidia continue to lead.
Also Read: Artificial Intelligence Is Slowly Replacing Human Work
In an internal memo, Tan highlighted the need for decisive action, singling out middle management as a key barrier to agility. The new structure will reportedly flatten leadership levels, allowing major chip development teams to report directly to the CEO—part of an effort to restore Intel’s engineering-first culture.
This isn’t the first sign of transformation under Tan’s leadership. Earlier this month, Intel sold a majority stake in its Altera programmable chip division to Silver Lake, a move that signaled the company’s intent to offload non-core assets and refocus its efforts.
Investors and industry analysts now await Intel’s Q1 2025 earnings call, where the company is expected to provide further details on its restructuring and future direction.
