Intel to Slash 20% Workforce in Major Restructuring Drive Under New CEO Lip-Bu Tan

Intel Corp. is reportedly preparing to cut more than 20% of its workforce, a move aimed at eliminating bureaucracy and reviving its engineering-led culture, according to a person familiar with the matter.

This upcoming round of layoffs marks the first major restructuring initiative under the leadership of new CEO Lip-Bu Tan, who assumed the role just last month.

The planned layoffs would follow a significant workforce reduction in August last year, when the company eliminated around 15,000 jobs.

At the end of 2024, Intel’s employee count had already dropped to 108,900 from 124,800 the previous year.

A spokesperson for Intel declined to comment on the development. Shares of Intel climbed by as much as 6.5% in New York on Wednesday, their largest intraday gain in more than a week, despite having dropped around 40% over the past year.

Tan’s Turnaround Mission

Tan, previously the CEO of Cadence Design Systems Inc. and a former Intel board member, has taken charge at a time when the chipmaker is struggling to keep pace with competitors.

Intel has fallen behind rivals like Nvidia in artificial intelligence computing, contributing to three consecutive years of declining revenue and growing losses.

To address this, Tan is seeking to streamline Intel’s internal structure by removing layers of middle management, simplify its operations, and renew the company’s commitment to engineering innovation.

At the Intel Vision conference last month, Tan emphasized the need to replace lost engineering talent and adjust manufacturing operations to better align with customer needs.

Strategic Asset Realignment

In a step toward realigning Intel’s core focus, the company recently agreed to sell a 51% stake in its programmable chip unit Altera to Silver Lake Management.

Tan has also indicated plans to offload other non-core assets as he works to sharpen Intel’s product strategy.

Intel is set to report its first-quarter earnings on Thursday, which will offer Tan an opportunity to share further details about his restructuring roadmap.

Past Leadership and Delayed Projects

Tan took over after the ousting of former CEO Pat Gelsinger, who had attempted a turnaround through large-scale investments in Intel’s manufacturing infrastructure.

Gelsinger’s approach, aimed at positioning Intel as a foundry for other tech firms, involved significant capital outlays — including plans for a major chip facility in Ohio. However, under Tan’s leadership, several of these expansion plans have now been postponed.

The delay has cast uncertainty on Intel’s position within the broader chip manufacturing landscape, especially in relation to U.S. government funding through the 2022 Chips and Science Act.

Intel was previously expected to be a key beneficiary of the act, but changes under the Trump administration have placed the program in a state of flux.

AI Lag and Competitive Setbacks

Intel’s declining fortunes have been exacerbated by its slow adaptation to the AI revolution.

The company, once dominant in the personal computing and data center segments, missed the early AI wave that helped propel Nvidia to become the world’s most valuable semiconductor firm. Intel’s annual loss of $19 billion in 2024 marked its first in nearly four decades.

Former CEO Gelsinger had acknowledged the company’s waning competitiveness and cited frustration over its inability to respond quickly to market changes. Tan has also made it clear that the path to recovery will not be immediate.

“It won’t happen overnight,” he said last month. “But I know we can get there.”

Mass Layoffs in a Challenging Tech Climate

The anticipated cuts could result in over 21,000 employees being laid off globally. This would be Intel’s largest layoff in history. While exact details remain undisclosed, the layoffs are expected to target middle management positions as part of Tan’s efforts to improve efficiency and agility.

This development mirrors broader trends in the tech industry, which has seen more than 23,500 job cuts across 93 companies in 2025 alone, according to Layoffs.fyi.

Other major tech firms such as Google, Microsoft, Meta, and TikTok have also trimmed staff as part of AI-focused restructuring strategies.

Intel’s restructuring plan underscores a growing belief among tech leaders that leaner teams, driven by engineering innovation and AI efficiency, can achieve more in an increasingly competitive landscape.