Intel is planning to lay off 20% of its workforce this week, according to Bloomberg. These job cuts are aimed at cutting bureaucracy, streamlining management, and making the company more engineering-focused. This is the first major move under Intel’s new CEO Lip-Bu Tan, who took charge just last month.
Key Points:
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The layoffs may impact thousands of employees globally, though exact numbers and timing haven’t been confirmed.
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It could be bigger than the August 2024 cuts, when Intel let go of 15,000 employees (~15% of staff).
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Tan wants to simplify Intel’s internal structure by reducing layers of middle management.
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His focus is on AI strategy, chip manufacturing, and returning to Intel’s engineering roots.
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At a recent town hall, he told employees that "tough decisions" were coming.
Background:
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Tan, 65, was previously CEO of Cadence and on Intel’s board. He returned during a crisis period for Intel.
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The company reported a $19 billion loss in 2024, its first annual loss since 1986.
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Intel has lost ground to competitors like Nvidia and Arm, especially in AI chips.
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Tan’s approach is a leaner version of former CEO Pat Gelsinger’s strategy to make Intel a top global chipmaker.
Broader Trend:
The layoffs at Intel are part of a wider wave of job cuts across the tech industry:
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Over 23,500 tech employees have been laid off in 2025 so far, across 93 companies.
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Google, Microsoft, Meta, TikTok, Ola Electric, and Siemens have also reduced staff.
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Many of these cuts are tied to AI restructuring, cost-cutting, and efforts to improve efficiency.
The tech industry is clearly in a transition phase, focusing more on AI, engineering talent, and leaner operations.
