Intel announced more than 20% of its job cuts this week? New CEO Lip-Bu Tan is underway for a major restructuring – Details
According to people familiar with the matter, Intel is ready to announce plans to lay off more than 20% of its employees this week, aiming to eliminate the bureaucracy of troubled chipmakers.
According to the person, the move is part of a simplified management and reconstruction engineering-driven culture, as the plan is private and he requests not to be identified. This will be the first major restructuring under new CEO Lip-Bu Tan last month.
Cutting measures cut about 15,000 jobs last year, a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 employees the previous year.
Intel representatives declined to comment.
After years of Intel ceding the ground, Tan’s goal is to reverse the iconic chip maker. The Santa Clara, California-based company has lost its technological advantage and has been struggling to catch up with Nvidia Corp. in AI computing. This led to a three-year decline in sales and continued red ink.
Tan, a veteran of Cadence Design Systems Inc., vowed to tear down Intel assets that were not the core of its mission and create more compelling products. Last week, the company agreed to sell a 51% stake in its programmable chip unit Altera to Silver Lake Management, a step towards that goal.
Tan said at an Intel Vision meeting last month that Intel needs to replace its lost engineering talent, improve its balance sheet and improve a better Attune manufacturing process to meet the needs of potential customers.
The company plans to report its first-quarter results on Thursday.
(with Bloomberg input)
