Intel to Cut Workforce by Over 20% in Major Layoffs
Intel Corporation, based in California, is reportedly going to implement significant layoffs affecting more than 20% of its workforce. This decision is part of a broader strategy aimed at shifting the company’s focus back to an engineering-driven culture, according to a report from Bloomberg.
Context Behind the Layoffs
The forthcoming layoffs follow a previous reduction where Intel announced in August 2024 the reduction of 15% of its employees. This earlier cut aligned with the now-former CEO Pat Gelsinger’s strategy to revitalize Intel’s chip manufacturing leadership.
Intel’s current CEO, Lip-Bu Tan, is spearheading this push for a transformation within the company’s operations. Tan’s recent initiatives aim to address previous internal challenges and management issues that have hampered the company’s manufacturing and artificial intelligence capabilities. Notably, Intel has experienced difficulties maintaining its competitive edge in chip production, especially given the escalating demand for AI-related processors.
Details Still Pending
As of now, Intel has not specified the exact timeline for these layoffs, nor has it detailed which departments will be affected by this staffing reduction. Financial insights related to this downsizing and Tan’s turnaround strategy are expected to emerge with the company’s first-quarter financial results, scheduled for release on April 24.
Furthermore, analysts are concerned that external factors, such as potential trade tensions between the U.S. and China and associated tariffs, could introduce additional complications to Intel’s restructuring efforts.
