Intel is reportedly preparing to implement a significant reduction in its workforce, with potential layoffs exceeding 20 percent of its total employees. Sources suggest that the struggling semiconductor giant could announce its plan for this substantial downsizing as early as this week. At the end of last year, Intel employed 108,900 individuals, indicating that the impending cuts could impact tens of thousands of jobs. According to a Bloomberg source, the primary objective of this restructuring is to streamline management operations and realign Intel with a more pronounced engineering-driven culture.
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This potential wave of layoffs follows a previous announcement in August 2024, where Intel stated its intention to cut over 15,000 jobs as part of a broader cost-reduction strategy. In fact, the company, which has faced challenges in adapting to the industry’s rapid shift towards artificial intelligence, has been steadily reducing its headcount since 2022 amidst declining sales figures.
These latest purported layoffs would represent one of the first major restructuring initiatives undertaken since Lip-Bu Tan assumed the role of CEO in March, following the unexpected departure of Pat Gelsinger. The company is scheduled to release its quarterly earnings report on Thursday, April 25th, 2025. It is a common practice for companies undergoing restructuring to announce workforce reductions around the time of their earnings releases.
In addition to potential layoffs, CEO Tan has also publicly committed to divesting assets that are not central to Intel’s core strategic objectives as part of his efforts to revitalize the business. Just last week, news emerged that Intel is selling a majority stake in chipmaker Altera for a substantial $4.46 billion. That significant deal is anticipated to be finalized later this year.
