Intel to Cut Over 20% of Workforce
Intel is preparing to slash more than 20% of its workforce this week, in what will be its biggest round of layoffs under new CEO Lip-Bu Tan. The cuts are part of Tan’s broader push to strip away bureaucracy, streamline operations, and bring back an engineering-focused culture after several tough years for the chipmaker.
The job reductions come on the heels of last year's 15,000 layoffs and form part of a larger $10 billion cost-cutting plan. Intel has been struggling to keep up with competitors like Nvidia in the AI chip race, while its expensive pivot to custom chip manufacturing and delayed expansion plans have put further pressure on the company. “Tough decisions” were coming, Tan told employees, with bloated middle management a key target.
Tan, who stepped in last month after the ousting of Pat Gelsinger, is also shaking up leadership, having chip teams report directly to him. The company is expected to reveal more when it announces quarterly earnings on Thursday. While the market has welcomed the changes—Intel shares jumped 3.5% premarket—Tan made it clear: “It won’t happen overnight. But I know we can get there.”
