Synopsis: Intel is set to lay off 20% of its global workforce under the leadership of new CEO Lip-Bu Tan, marking a dramatic shift in the company’s strategic direction. The move is part of a broader effort to eliminate bureaucracy, refocus on engineering, and regain market momentum.
In a massive shake-up that could redefine the future of one of the world’s leading chipmakers, Intel is preparing to lay off nearly 20% of its global workforce — a move that will affect tens of thousands of employees, according to a report by Bloomberg. The sweeping job cuts come just weeks after Lip-Bu Tan took over as the company’s new CEO, signalling a new era for Intel marked by deep structural change.
A CEO With a Mission
Lip-Bu Tan, 65, who previously led Cadence Design Systems and served on Intel’s board, stepped into the top role last month. Taking the reins during one of the most challenging periods in Intel's history, Tan has wasted no time initiating aggressive reforms to reverse the company’s declining fortunes.
With Intel posting a staggering $19 billion annual loss in 2024 — its first in nearly 40 years — and losing AI chip market share to Nvidia and Arm, Tan is shifting focus toward revitalising the company's engineering base and cutting excess layers of management.
Why the Layoffs?
According to Bloomberg, the layoffs are designed to eliminate bureaucracy, flatten Intel’s internal hierarchy, and improve execution speed. Tan has made it clear that middle management bloat is slowing innovation and preventing Intel from competing effectively in the high-stakes AI and semiconductor race.
A previous round of cuts in August 2024 had already affected 15,000 employees. This latest move, however, is expected to go deeper, making it one of the largest rounds of layoffs in Intel’s history.
Focus on AI and Engineering
Tan’s vision for Intel includes a complete overhaul of its artificial intelligence (AI) roadmap and chip manufacturing operations. Speaking at the Intel ‘Vision’ event earlier this month, Tan stressed a return to core engineering values and promised to empower technical teams to drive the company forward.
He also pledged to attract and retain world-class engineering talent, even as cost-cutting measures intensify.
Part of a Broader Tech Industry Trend
Intel’s restructuring aligns with a broader wave of job cuts across the tech industry. According to Layoffs.fyi, over 23,500 tech workers have been laid off in 2025 across 93 companies. Rising interest rates, slowing revenue growth, and a post-pandemic recalibration are forcing many firms to re-evaluate their staffing and strategies.
What’s Next for Intel?
While Tan remains committed to some aspects of his predecessor Pat Gelsinger’s strategy — including Intel’s goal to become a major global foundry — he plans to achieve it with a smaller, sharper team focused on operational efficiency and faster product cycles.
Intel’s fate now hinges on how quickly it can realign its business under Tan’s leadership, rebuild customer trust, and regain relevance in the rapidly evolving AI and semiconductor markets.
Disclaimer: This article is for informational purposes only and does not constitute professional or financial advice. Readers should refer to official company statements or consult a trusted advisor before making conclusions.
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