Bloomberg News reports Intel Corp. plans to announce workforce reductions exceeding 20% during this week under new CEO Lip-Bu Tan. The employee reductions will affect 22,000 staff members from Intel’s total workforce of 108,900 employees at the end of 2024. The company made its first major workforce reduction last year when it cut 15,000 positions to optimize operations.
The restructuring according to Bloomberg seeks to create a simpler management structure while bringing back Intel’s traditional engineering-based culture. Tan took leadership in March and has started by selling Altera through majority stake divestitures while planning to spin off non-core units as part of his company-wide turnaround strategy.
Intel has not provided any immediate statements regarding this matter. The company plans to disclose its first-quarter financial results on Thursday while dealing with its delayed AI chip progress and Chinese trade disputes under the Trump administration. The stock value of Intel has decreased by 20% during the previous month and 43% throughout the last year because investors doubt its market competitiveness.
The semiconductor market’s fast evolution has forced Intel to conduct extensive layoffs because its competitors have outpaced the company in AI and other fast-growing sectors. The extensive nature of the layoffs demonstrates the severe challenges Intel faces while Tan’s restructuring efforts indicate a shift toward operational efficiency and core engineering capabilities.
