Major Layoffs Announced at Intel: New CEO Lip-Bu Tan Plans to Eliminate Over 20% of the Company's Workforce
Intel Prepares for Major Workforce Reduction Under New CEO
Intel, the leading semiconductor manufacturer, is set to announce a significant workforce reduction, affecting over 20 percent of its global staff, according to a Bloomberg report. The cut, expected to be announced on Thursday, April 24, alongside Intel's Q1 earnings, marks the first major restructuring under the newly appointed Chief Executive Officer, Lip-Bu Tan.
The layoffs, impacting more than 20,000 employees, aim to eliminate perceived bureaucratic complexity within the organization, as per Tan's view. Intel ended 2024 with approximately 108,900 employees, following a previous round of layoffs in August that reduced 15,000 roles. The upcoming cut, however, is notably more drastic, representing nearly a fifth of the workforce.
Tan, an accomplished semiconductor executive and former CEO of Cadence Design Systems, assumed leadership at Intel in March 2025. He inherits a company grappling with declining revenues, eroding market share, and dwindling investor confidence. Intel's stock did a steep nosedive of 60 percent during 2024, and the company reported a $1.6 billion quarterly loss towards the end of the year. Revenue for Q4 2024 dropped by 7 percent year-on-year.
The strategic realignment includes a renewed focus on "world-class" products and foundry services. Tan has initiated the divestment from non-essential business areas, including the partial sale of Intel's stake in Altera, its FPGA business.
In a message to employees following his appointment, Tan wrote: "Together, we will work hard to restore Intel's position as a world-class products company, establish ourselves as a world-class foundry, and delight our customers like never before."
The cuts are said to target Intel's middle management, which has been criticized both internally and externally for being overly burdensome. This move echoes broader industry trends, as Microsoft is reportedly planning a similar reorganization to increase the ratio of engineers to managerial staff.
The emphasis on reducing managerial overhead may help Intel move more swiftly in meeting market needs. However, analysts express skepticism about whether workforce reductions alone can revive the company's fortunes, with some predicting that even if Intel successfully implements its turnaround strategy, it may take several years before the company regains its former standing in the semiconductor industry.
Industry experts view Intel's restructuring as part of a wider narrative playing out across the tech sector, where legacy firms look to reinvent themselves amidst fast-moving competition and shifting market dynamics. For Intel, this means doubling down on foundry services, reinvesting in R&D, and shedding any part of the organization that does not contribute to its renewed core mission.
The upcoming announcement is likely to shed light on Tan's plans to lead Intel through what may be one of the most critical periods in its history. Investors and stakeholders will be closely monitoring Intel's financial results, hoping for a clearer picture of Tan's vision for Intel's future.
The upcoming workforce reduction, affecting over 20,000 Intel employees, is a significant step in the company's strategic realignment under the new CEO, Lip-Bu Tan. This move, aimed at eliminating perceived bureaucratic complexity, follows broader industry trends, as companies like Microsoft are reportedly planning similar reorganizations to increase the ratio of engineers to managerial staff.
