Intel Plans Huge Job Cuts Under New CEO Lip-Bu Tan

Intel Corporation is reportedly planning to cut more than 20% of its global workforce. The move is said to be part of a massive restructuring under the company’s new Chief Executive Officer, Lip-Bu Tan, who only took over the role last month.

According to a Bloomberg report, this will be the first major change led by Tan, and it’s aimed at reducing corporate red tape, improving efficiency, and helping Intel get back on track in the highly competitive semiconductor industry.

Intel has been facing major challenges over the past few years. Once a clear leader in the chip-making world, the company has struggled to keep up with rivals, especially in fast-growing segments like AI chips, where competitors such as Nvidia have taken the lead.

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Intel has also experienced three years of declining sales and project delays, including setbacks in building a major new factory in Ohio.

This latest wave of job cuts is expected to affect more than 20% of the company’s employees—a significant portion of its workforce. Last year, Intel had already laid off around 15,000 workers, reducing its headcount from 124,000 to 108,000 by the end of 2024.

CEO Lip-Bu Tan, who previously served as the CEO of Cadence Design Systems and is well-known in the semiconductor world, has made it clear that Intel needs a major reset.

Speaking at the Intel Vision 2025 event last month, Tan said that the company needs to “regain lost engineering talent” and realign its manufacturing efforts to match the demands of the future.

As part of this restructuring plan, Intel is also shedding some of its non-core businesses. Recently, the company sold a 51% stake in its programmable chip unit, Altera, to Silver Lake Management, a private equity firm.

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Analysts say that more asset sales may be on the way, as Intel looks to narrow its focus and strengthen its core chip-making operations.

Intel is expected to reveal more about its restructuring strategy and plans during its first-quarter earnings announcement on Thursday.

Investors, employees, and analysts alike will be paying close attention to what Tan has to say, as this could be a defining moment for Intel’s future.