Intel Corporation is preparing to lay off more than 20 per cent of its global workforce this week in a sweeping bid to reduce bureaucracy and refocus on engineering, a person familiar with the matter has revealed.
The restructuring marks the first major move by new CEO Lip-Bu Tan, who took over last month.
A veteran of Cadence Design Systems, Tan aims to rebuild Intel’s competitiveness after years of ceding ground to rivals like Nvidia.
Last year, Intel cut 15,000 jobs, reducing its workforce to 108,900 by the end of 2024.
A company spokesperson declined to comment on the upcoming layoffs.
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At the Intel Vision conference last month, Tan said the company must regain lost engineering talent, improve its finances, and align manufacturing with market needs.
“It won’t happen overnight,” he said. “But I know we can get there.”
Tan has already begun shedding non-core assets. Last week, Intel sold a 51 per cent stake in its Altera unit to Silver Lake Management.
Intel is set to announce first-quarter results on Thursday, where Tan is expected to outline more of his turnaround plan.
Analysts warn that despite stabilising revenue, Intel may not return to its former sales levels for years.
The restructuring follows the departure of Pat Gelsinger, whose costly expansion plans faltered.
Projects such as a major Ohio chip plant have been delayed, and Intel’s expected gains from the Chips and Science Act are uncertain under President Donald Trump.
Intel has also lost momentum in AI, allowing Nvidia to dominate.
Once a leader in PC and data centre chips, Intel now trails in the fastest-growing segment of the semiconductor industry.
