Intel Corporation is set to announce plans to cut over 20% of its workforce this week, marking a significant restructuring effort under its new CEO, Lip-Bu Tan. This move aims to streamline operations, reduce bureaucracy, and refocus on an engineering-driven culture. The layoffs follow a previous reduction of 15,000 jobs last year, as the company grapples with declining sales and increasing competition in the semiconductor industry.
The restructuring comes as Intel seeks to regain its competitive edge, particularly in artificial intelligence (AI) computing, where it has fallen behind rivals like Nvidia. CEO Lip-Bu Tan, who took over last month, has outlined a strategy to spin off non-core assets, improve manufacturing processes, and create more compelling products. Recently, Intel sold a 51% stake in its programmable chips unit, Altera, to Silver Lake Management as part of this plan.
Intel’s workforce reduction is expected to impact middle management layers significantly, addressing inefficiencies and aligning the company with its new strategic goals. The company, which had 108,900 employees at the end of 2024, is also set to report its first-quarter results this week, providing an opportunity for the CEO to elaborate on his vision for Intel’s future.
This restructuring effort highlights Intel’s challenges in adapting to a rapidly evolving market and its commitment to reclaiming its position as a leader in the semiconductor industry.
