In a bold and sweeping move, Intel is reportedly preparing to lay off more than 21,000 employees—approximately 20% of its global workforce—according to a Bloomberg report cited by Reuters. The announcement is expected later this week.
The layoffs mark the latest step in Intel’s ongoing transformation under newly appointed CEO Lip-Bu Tan, who took the reins in late 2024. The goal: to “streamline management and rebuild an engineering-driven culture” as the company battles to reclaim its footing in the semiconductor space.
Intel has been in a prolonged slump, with its stock down 67% over the last five years. After previous layoffs in August 2024 affecting 15% of staff, this new wave reflects a deeper overhaul. Tan focuses on revitalizing Intel’s manufacturing and AI divisions, which have lagged behind competitors amid soaring demand for advanced processors.
While Intel has yet to confirm which departments will be impacted or when the layoffs will begin, the decision follows a strategic pivot away from non-core business units. Just this month, Intel sold a majority stake in its Altera chip division to private equity firm Silver Lake.
The timing is critical, as Intel is also set to release its Q1 2025 earnings on April 24. Analysts and investors alike will watch closely for signs of whether Tan’s aggressive turnaround plan can bear fruit, especially amid geopolitical tensions and looming trade risks with China.
Intel declined to comment on the reports at this time.
