Intel seems to be planning a major shakeup that would be bad news for its employees. A new report has stated that the company will lay off more than 20% of its staff to streamline management and eliminate bureaucracy. Things have been changing at Intel ever since new Chief Executive Officer Lip-Bu Tan was brought on last month. The layoff announcement is expected this week.
A Bloomberg report, citing an anonymous source with knowledge of the matter, states that this major move is to rebuild an engineering-driven culture at Intel. This falls in line with Tan’s belief that Intel needs to replace the engineering talent it has lost. Tan feels that the company needs to adapt its manufacturing processes to the needs of the customer. This apparently entails laying of over 20% of its workforce which would amount to over 20,000 employees globally.
At the end of 2024, Intel reportedly had 108,900 employees, which was after a round of layoffs that took place in August 2024. The new round of layoffs is expected to be announced on Thursday, April 24, when the first-quarter results will be shared.
Intel has been struggling to hold its position in the market against competitors like Nvidia and AMD. Tan was brought on to address these downfalls and his plan is to create more compelling products by branching off assets that are not crucial to the company’s mission, according to the report. Meanwhile, the report also states that analysts have projected Intel may never be able to achieve its previous glory in terms of sales. If it eventually does, it will take several years.
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Vineet Washington,2025-04-23(Update:2025-04-23)