Intel Layoffs: 20% Workforce Reduction Under CEO Lip-Bu Tan’s Leadership

New CEO Lip-Bu Tan leads a shift towards AI and lean operations to tackle financial pressures.

Intel Corporation has announced plans to lay off more than 20% of its workforce impacting approximately 21,800 employees as part of a massive restructuring effort aimed at reviving the company’s competitive edge and reducing operational inefficiencies.

This move follows the August 2024 decision to eliminate 15,000 jobs under a $10 billion cost-saving initiative. Intel, once a leader in semiconductor innovation, is facing mounting pressure from rivals, particularly Nvidia, which has surged ahead in the AI chip market.

Newly appointed CEO Lip-Bu Tan, who took the helm in March 2025, is leading this turnaround with a renewed focus on engineering and agility.

Tan described Intel’s management structure as “bloated” and emphasized the need to cut down on bureaucratic layers to speed up decision-making.

“We are moving towards a leaner, engineering-driven culture,” Tan stated, highlighting a strategy shift that includes a revamp of Intel’s AI ambitions and manufacturing roadmap.

Intel’s financial results reflect its current challenges. The company reported a net loss of $1.6 billion in Q2 2024, compared to a $1.5 billion profit the previous year. Revenue dipped 1% to $12.8 billion, falling short of expectations. Amid these pressures, Intel has also suspended its stock dividend in an effort to stabilize its balance sheet.

The layoffs are expected to impact middle management the most, as Intel looks to streamline operations and refocus resources on core innovation areas. The company employed around 108,900 people at the end of 2024.

Intel is set to release its first-quarter earnings report later this week, which will offer more insights into the financial trajectory and the potential impact of the layoffs.