Intel to Shed More Than 20% of Workforce in Strategy

Intel Corporation will cut over 20% of its workforce. This move aims to streamline operations and focus on engineering excellence. The new CEO, Lip-Bu Tan, has decided to take over the company. His goal is to restore its position in the competitive semiconductor market.

Background: Intel's Strategic Shift

Intel has had a tough time keeping its market share lately. This is true in fast-changing fields like AI and advanced chip production. Its strong lead in the PC and data center markets now faces challenges from rivals like NVIDIA and AMD. Intel announced a 15% staff cut in August 2024. This plan targets about 15,000 jobs and is part of a $10 billion cost-saving effort.

The New Layoffs: More Than 20% Workforce Cut

Intel is set to unveil later this week extra cuts of more than 20% of its worldwide work force. The goal of the move is to cut red tape. It also seeks to create a more efficient, engineering-focused culture at the company. Middle management causes slower decision-making. They will feel the biggest impact.

As of December 2024, Intel had around 108,900 workers. The new layoffs might impact over 21,000 workers. This could be one of the largest cuts to the company's staff ever.

Leadership and Vision: CEO Lip-Bu Tan's Role

Lip-Bu Tan became CEO in March 2025. He is now leading Intel to focus on its core engineering strengths. His plan focuses on reorganizing Intel's AI efforts and chip-making. This will help them compete better in today's tech landscape. Tan has emphasized the need for "tough decisions" to fix the company's problems. He has also started to flatten the leadership structure to boost efficiency.

Financial Situation and Future Prospect

Intel's decision to lay off many employees aims to cut costs and boost profits. Intel will share its first-quarter financial results on Thursday. This will show how well the company is doing and the impact of its restructuring program.

Intel's strategy change shows it is committed to regaining its edge in the semiconductor market. The company seeks long-term growth. It does this by simplifying operations and focusing on engineering innovation. Market dynamics are changing, so this strategy is key.

• Intel layoffs 2025
• Intel CEO Lip-Bu Tan
• Intel job cuts
• semiconductor industry news
• Intel workforce reduction
• tech layoffs USA 2025
• AI chip manufacturing
• Intel restructuring
• Intel engineering focus
• latest Intel news