Intel is preparing to lay off more than 20% of its global workforce this week as part of a sweeping plan to reduce bureaucratic inefficiencies and refocus on innovation, according to a report by Bloomberg News on Tuesday. The decision marks a significant step by new CEO Lip-Bu Tan, who assumed leadership last month with a mandate to revitalize the struggling semiconductor giant.
Sources familiar with the matter say the cuts are intended to streamline operations, flatten the management structure, and accelerate decision-making. Intel has yet to issue a public comment regarding the report.
This would be Intel’s largest round of layoffs since August 2024, when the company announced it would cut approximately 15% of its staff—about 15,000 jobs—as part of a broader $10 billion cost-saving plan. At that time, Intel cited rising operating expenses, shrinking profit margins in its core PC and data center businesses, and the high costs associated with catching up in the artificial intelligence chip market.
CEO Tan has already made moves to reorient the company’s direction. In his first weeks at the helm, he held a company-wide town hall where he warned of “tough decisions” ahead and outlined plans to rebuild Intel around an engineering-first culture. Tan has also begun flattening the company’s leadership hierarchy, with key chip teams now reporting directly to him, Reuters previously reported.
The anticipated job cuts are viewed as part of a broader effort to reset Intel’s long-term strategy. With mounting pressure from faster-moving competitors like Nvidia and AMD, Intel is attempting to shift its focus toward advanced chip development and more agile AI-driven product cycles.
As of the end of 2024, Intel employed roughly 108,900 people worldwide. The company is expected to report its first-quarter financial results on Thursday, and analysts will be watching closely for updates on the restructuring plan and any revisions to its AI and chip manufacturing roadmap.
