Intel is reportedly planning to cut more than 21,000 jobs — about 20% of its global workforce — as part of a sweeping restructuring initiative under new CEO Lip-Bu Tan. The announcement is expected ahead of the company’s first-quarter earnings call this week, according to Bloomberg News.
The layoffs come amid Intel’s efforts to streamline operations and reduce bureaucratic inefficiencies.
The move is the first major decision by Tan, who succeeded Pat Gelsinger as CEO in late 2024.
Aimed at reviving the struggling chipmaker, the cuts are intended to help shift Intel’s focus back to its engineering roots and improve overall agility.
Intel had around 108,900 employees at the end of 2024, following a previous workforce reduction of 15,000 jobs in August as part of a $10 billion cost-cutting plan.
At that time, the company cited declining margins in its core PC and data center businesses, as well as rising investment costs tied to its transition toward AI chip development — an area where Intel has lagged behind competitors like Nvidia.
Under Tan’s leadership, Intel has also started spinning off non-core units.
Earlier this month, it sold a majority stake in its Altera programmable chip business to private equity firm Silver Lake. In internal communications,
Tan emphasized the need for “tough decisions,” identifying middle management as a key bottleneck.
Sources say the restructuring will include flattening the leadership hierarchy and having major chip development teams report directly to the CEO.
Intel has yet to publicly comment on the reported job cuts.
The company is set to release its Q1 2025 earnings on Thursday, where more clarity on its restructuring strategy and financial outlook is expected.
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