Intel Corporation, the Santa Clara-based semiconductor giant, is reportedly preparing to lay off over 20% of its global workforce, according to sources cited in a Bloomberg report. The sweeping job cuts are expected to be announced later this week and are part of a strategic overhaul led by newly appointed CEO Lip-Bu Tan, who took charge in March 2025.
As per sources familiar with the matter, the layoffs aim to eliminate excessive bureaucracy and restore Intel’s focus on innovation by “rebuilding an engineering-driven culture.” The company, which has been grappling with three consecutive years of declining sales, is restructuring in a bid to reclaim its position in the AI and high-performance chip market, where it has significantly fallen behind rivals like Nvidia.
This isn’t the first time Intel has undertaken large-scale job cuts to regain footing. In August 2024, the company slashed nearly 15,000 jobs, reducing its total employee strength to 1,08,900. Just a year prior, Intel’s workforce was 124,800. However, the current move is poised to be even more significant, with insiders suggesting a sharper focus on trimming managerial roles and non-essential verticals to speed up decision-making and product innovation.
According to sources, Tan’s vision includes spinning off non-core business units, cutting layers of mid-management, and aggressively investing in engineering and product development. At the recent Intel Vision Conference, Tan stressed that Intel must not only replace lost engineering talent but also refine its manufacturing processes to meet the evolving demands of enterprise clients and cloud infrastructure providers.
Tan, who is widely respected for his tenure at Cadence Design Systems Inc., has already made bold declarations about realigning Intel’s assets, strengthening its balance sheet, and launching chip solutions that can directly compete with Nvidia’s dominant presence in the AI and machine learning space.
Sources further reveal that while the layoffs are expected to affect all levels of the organization, the biggest impact will be felt across non-technical and support functions, where layers of management have slowed down execution. The restructuring aims to transform Intel into a leaner, more agile, and technology-first company that can once again lead in semiconductor innovation.
As of now, Intel has not issued an official statement, and a company representative declined to respond to media queries regarding the job cuts. However, multiple reports suggest that internal briefings have begun, and the formal announcement could be made imminently.
This move is part of a broader trend in the global tech sector in 2025, where companies across the board—from startups to legacy giants—are embracing efficiency-led downsizing to drive faster innovation and profitability. For Intel, this restructuring is more than a financial decision; it’s a strategic reboot that could determine the future trajectory of the company.
While the layoffs will undoubtedly have a profound impact on employees, industry analysts believe that if executed effectively, the changes could pave the way for Intel’s resurgence as a competitive force in the global AI chip market.
Stay tuned to ibizznews for further updates.
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