Report: Intel set to cut 20% of its workforce
Over 20,000 employees are poised to lose their jobs. The move was described by sources to Bloomberg as an attempt by new CEO Lip-Bu Tan to streamline management and rebuild an engineering-driven culture.
Intel is going to cut more than 20% of its workforce, according to a report by Bloomberg. This could mean more than 20,000 employees are poised to lose their jobs.
The move was described by sources to Bloomberg as an attempt by new CEO Lip-Bu Tan to streamline management and rebuild an engineering-driven culture.
Tan, a chip industry veteran, became CEO in March amid one of the most challenging phases in the history of the chipmaker. Not only has Intel lost its lead in process manufacturing to Taiwan’s TSMC, it has also failed to catch up in the booming AI sector, where Nvidia has left the competition behind.
Last year Intel had announced it was cutting 15,000 jobs. At the end of 2024, the struggling chipmaker had 108,900 employees, compared to 124,800 the previous year.
Tan intends to spin off company assets that aren’t central to Intel’s mission and create more exciting products. Recently, Intel sold a 51% stake in its programmable chips unit Altera to Silver Lake Management.
Earlier reports suggesting that a partnership between Intel and tech giant TSMC was being considered now seems less likely.
According to another recent Reuters report, Tan is restructuring the company’s leadership team, with key semiconductor groups reporting directly to him. Intel has also appointed Sachin Katti, its networking chip chief, as the chief technology officer (CTO) and AI head, the Reuters report said. Katti, who is also a professor at Stanford University, will succeed Greg Lavender, who is reportedly retiring from Intel.
