Tech giant Intel Corporation plans to announce layoffs sometime this week, as per a Bloomberg report citing a source. The job cuts would entail reducing workforce by over 20 per cent to “eliminate bureaucracy”, the source added.
The chip major is reportedly undergoing major restructuring under new CEO Lip-Bu Tan, and the Intel layoffs aim to “streamline management and rebuild an engineering-driven culture”, the source said. Tan took over in March 2025.
A representative for Intel declined to answer queries, the report said.
Layoffs at Intel? Source Says 20% Jobs Soon
The report said that more than 20 per cent Intel jobs will be cut in a bid to turnaround the struggling chipmaker as Tan aims to take on rivals after years of trailing behind Nvidia on artificial intelligence (AI) chips.
This is not the first time Intel has undertaken job cuts to improve its situation. In August 2024, as many as 15,000 employees were laid off taking the company’s total strength to 1,08,900 till the end of the year. In the previous year, 2023, Intel had a total of 124,800 employees.
Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The Santa Clara, California-based company lost its technological edge and has struggled to catch up with Nvidia Corp. in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink.
Tan, a veteran of Cadence Design Systems Inc., has vowed to spin off Intel assets that aren’t central to its mission and create more compelling products. Last week, the company agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal.
Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Tan said last month at the Intel Vision conference.
The company is scheduled to report its first-quarter results on Thursday.
(With inputs from Bloomberg)
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