Intel chopping 20% workers soon…20k jobs at stake?

[k1976]

Intel Corp. is planning to announce cuts to more than 20% of its workforce this week, Bloomberg News reported Tuesday night, in what would be the the first major restructuring under new Chief Executive Lip-Bu Tan.

The layoffs would affect roughly 22,000 workers, based on Intel's global workforce of 108,900 as of the end of 2024. Last year, Intel (INTC) announced it would lay off 15,000 employees in an effort to downsize and become more efficient.

According to Bloomberg, the latest restructuring seeks to streamline management and re-establish Intel's engineer-driven corporate culture.

Intel did not immediately respond to a request for comment.

Tan, who took over at Intel in March, previously announced the chip giant would sell its majority stake in its Altera business, and said he intends to spin off some of Intel's "non-core" businesses as part of his turnaround efforts.

Intel is scheduled to report first-quarter earnings Thursday. The company is in a precarious position, having fallen far behind its rivals at producing AI chips and facing the effects of the Trump administration's trade war with China.

Read more: Intel's earnings outlook could be 'useless.' Here's what matters instead.

Intel shares have slid nearly 20% over the past month, and are down 43% over the past 12 months,

 

[k1976]

The layoffs mark the first major move under new CEO Lip-Bu Tan, who took over last month to revive the struggling Silicon Valley chipmaker after years of challenges.



Last month, Reuters reported that Tan was considering significant changes to its chip manufacturing methods and artificial intelligence strategies.

The new trajectory involved restructuring Intel's AI strategy and implementing staff cuts to address what Tan described as a slow-moving and bloated middle management layer. Shortly after his appointment, he told employees in a town hall that the company will have to make "tough decisions."

Last week, Reuters reported that Tan was restructuring the company by flattening its leadership team, with key chip groups now reporting directly to him.