Intel May Cut 20% of Global Workforce Amid Major Restructuring
Intel plans to cut over 20% of its global workforce as part of a major restructuring led by CEO Lip-Bu Tan, aiming to streamline operations and refocus on chip design and manufacturing.
Intel
Intel Corporation is reportedly planning to lay off more than 20% of its global workforce, according to Bloomberg News. The decision is part of an extensive restructuring strategy initiated by newly appointed CEO Lip-Bu Tan. With the company facing declining revenues and fierce competition, the move is aimed at streamlining operations and revitalising Intel’s core focus on advanced chip design and manufacturing.
Restructuring to Address Financial Pressures
This sweeping round of layoffs is expected to impact thousands of employees across Intel’s global offices. It follows last year’s reduction of 15,000 positions, which brought the company’s headcount down to 108,900 by the end of 2024—down from 124,800 the previous year.
The restructuring seeks to eliminate layers of bureaucracy, simplify management, and reinforce an engineering-driven culture that Intel was once known for. As the company works to cut costs and stay competitive, it is scaling back on less profitable ventures.
Renewed Focus Under CEO Lip-Bu Tan
Since taking over the reins, Lip-Bu Tan has prioritised realigning Intel’s business strategy to focus on its strengths—most notably, chip design and manufacturing. Speaking at the Intel Vision conference, his first public appearance as CEO, Tan acknowledged the steep challenges ahead but remained optimistic. “It won’t happen overnight,” he said, “but I know we can get there.”
A Shifting Competitive Landscape
Intel’s troubles are compounded by its slow pivot to fast-growing sectors such as artificial intelligence. While Nvidia has rapidly ascended to become the world’s most valuable semiconductor firm, Intel has struggled to keep pace and missed several critical opportunities in the AI space.
Adding to its challenges, Intel has also put key expansion projects on hold—including the much-publicised Ohio facility, once envisioned as the world’s largest chip production site.
Investors and analysts alike are now looking to Thursday’s scheduled earnings release for Q1 2025 for more clarity on Intel’s future direction under Tan's leadership.
