Intel is planning to cut over 20% of its workforce, amounting to over 21,000 employees, this week as part of a drastic restructuring effort under new CEO Lip-Bu Tan, according to a recent Bloomberg report citing sources familiar with the matter. The move follows years of declining competitiveness in key markets like AI chips, where rivals like Nvidia have surged ahead.  

The layoffs, expected to exceed 21,000 jobs based on Intel's 108,900 headcount at the end of 2024, mark Tan's first major shakeup since taking the helm last month. He has vowed to dismantle bureaucratic inefficiencies, telling employees in a recent town hall that "tough decisions" were necessary to refocus Intel as an engineering-driven company.  

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Intel's new CEO to receive $1 million salary

This latest workforce reduction builds on last August's cuts of 15,000 jobs, part of a broader $10 billion cost-slashing plan. As per a Reuters report on the matter, Intel has struggled with shrinking profit margins in its core PC and data centre divisions while playing catch-up in the AI chip race. Tan is also restructuring leadership, with key divisions now reporting directly to him in a flatter hierarchy. 

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Intel to sell 51% stake in Altera chip business to Silver Lake

The chipmaker, which reports Q1 earnings this Thursday, faces mounting pressure to prove its turnaround strategy can work. While details of severance packages remain unclear, the cuts signal a hard pivot toward leaner operations, and a stark admission that past approaches haven't kept pace with rivals. For Intel's remaining employees, the message is clear: adapt quickly, or risk becoming obsolete.