Report: Intel to cut 20% of its workforce in new restructuring move

Intel is reportedly planning to lay off over 21,000 employees or about 20% of its workforce as it continues with cost-saving measures that began last year. 

Bloomberg learned ahead of the company's Q1 earnings that CEO Lip-Bu Tan plans to “streamline management and rebuild an engineering-driven culture" with the cuts. 

As of late 2024, Intel had about 108,900 employees following 15,000 job cuts in August. The firm has faced ongoing struggles, with its stock down around 67% over the past five years. 

Since becoming CEO in late 2024, Tan has been restructuring Intel by spinning off “non-core” units, including selling a 51% stake in its Altera semiconductor business to Silver Lake.

Carving a new path

Reuters reported that Tan has begun overhauling Intel’s manufacturing and AI operations in response to the company losing its chipmaking lead to TSMC and falling behind rivals like Nvidia in the booming AI processor market.

He emphasised the need to rebuild Intel’s engineering talent, strengthen its finances, and sharpen its manufacturing focus, warning employees of “tough decisions” ahead.