SOURCE : NEW18 NEWS
Last Updated:April 23, 2025, 10:22 IST
The job cuts, expected to affect thousands, are part of a strategic overhaul led by new CEO Lip-Bu Tan, who assumed the role last month.
Intel’s New CEO Lip-Bu Tan has been working on sweeping reforms at Intel, including a revamp of its AI roadmap and chip manufacturing operations. (News18 Hindi)
Intel is set to slash about 20 per cent of its global workforce this week, according to a report by Bloomberg, in what could be the company’s largest round of layoffs in recent years. The job cuts, expected to affect thousands, are part of a strategic overhaul led by new CEO Lip-Bu Tan, who assumed the role last month.
The layoffs are aimed at “eliminating bureaucracy”, streamlining management, and refocusing the company on its engineering foundations, Bloomberg reported. While the precise number of affected employees has not been disclosed, the scale of this move is expected to surpass the company’s previous round of cuts in August last year, which impacted approximately 15,000 employees — or around 15 per cent of Intel’s staff.
related stories
According to a separate report by Reuters, Tan has been working on sweeping reforms at Intel, including a revamp of its artificial intelligence (AI) roadmap and chip manufacturing operations. A key element of his plan involves trimming layers of middle management, which he sees as an impediment to faster execution and innovation. In a recent company-wide town hall, Tan cautioned employees that “tough decisions” lay ahead.
Tan, 65, previously served as CEO of Cadence Design Systems and was a member of Intel’s board until August 2024. His appointment follows a challenging period for Intel, which reported a $19 billion annual loss in 2024 — its first in nearly four decades — and continues to lose market share to rivals like Nvidia and Arm, especially in the AI chip sector.
At Intel’s ‘Vision’ event earlier this month, Tan emphasised a return to the company’s engineering roots, highlighting the need to empower technical teams and restore customer confidence. He also underscored his commitment to recruiting and retaining top-tier engineering talent.
Intel’s new direction under Tan is a leaner and more execution-focused version of former CEO Pat Gelsinger’s strategy, which sought to position Intel as a global foundry for other tech giants. While that vision remains intact, Tan is expected to pursue it with a tighter team and sharper operational focus.
The layoffs at Intel are part of a broader trend of cost-cutting and restructuring across the tech sector. According to data from Layoffs.fyi, over 23,500 tech workers have already been laid off across 93 companies in 2025 so far.
