Intel may slash 20% of workforce as new CEO overhauls company structure

Intel

Intel is reportedly preparing to lay off more than 20% of its workforce, a dramatic move aimed at flattening its leadership and cutting operational fat, according to Bloomberg. The layoffs, expected to be announced this week, would mark the first sweeping restructuring under new CEO Lip-Bu Tan, who took the helm last month with a mandate to reset the company’s strategic course.

According to the report, the job cuts are part of Intel’s broader $10 billion cost-reduction plan for 2024 and follow a prior 15% workforce reduction last August. If confirmed, this latest round could impact over 21,000 jobs, based on the company’s most recent headcount of 108,900 employees.

Tan is reportedly targeting middle management in particular, calling it slow-moving and inefficient. In a recent town hall, he told employees that “tough decisions” were necessary to rebuild Intel’s engineering-first culture and refocus efforts on AI and chip manufacturing.

Intel has been under increasing pressure as rivals like Nvidia surge ahead in the AI chip race. The company has struggled with declining margins in its core PC and data center businesses and faces mounting costs tied to its shift toward advanced AI chips.

Tan’s leadership shake-up has already begun. Last week, key chip units were reorganised to report directly to the CEO, a move aimed at cutting layers of management and speeding up innovation cycles.

Intel has not publicly confirmed the layoffs. The company is expected to announce its first-quarter earnings on Thursday, where more details may emerge