Intel to Cut Over 20 Percent of Workforce

According to media reports, Intel plans to cut more than 20% of its staff. New CEO Lip-Bu Tan took over at the US chipmaker last month and is conducting a major restructuring.

The company is poised to announce the move later this week, with sources saying the cuts will help streamline management and kick off a wider rebuild that focuses on engineering. After taking on the CEO role on 18 March, Tan hinted he would revamp the company’s manufacturing processes and cut jobs at the middle management level while putting Foundry and AI chip production at the top of the agenda.

The latest job cuts follow the exit of 15,000 workers at the end of 2024, leaving it with around 109,000 employees. Intel is scheduled to report its first quarter 2025 results this week, with Tan expected to reveal his longer-term strategy. Speaking at a company event last month, Tan said Intel needs to bolster its engineering team and improve its balance sheet, while he has already made moves to spin off non-core assets. Last week, the company struck a deal to sell a 51% stake in Altera.