Intel, one of the world’s leading chipmakers, is set to lay off more than 21,000 employees this week, over 20% of its global workforce, in a sweeping restructuring move under its new CEO, Lip-Bu Tan.
This marks Intel’s second round of mass layoffs in less than a year. In August 2024, the company had already cut 15,000 jobs as part of cost-saving measures. The latest cuts will primarily affect non-engineering roles, including administrative, sales, marketing, and support staff.
The company has struggled to keep pace with rivals like Nvidia in the booming AI chip market and has faced declining revenues and profits. Intel’s previous CEO, Pat Gelsinger, launched an ambitious turnaround plan, but progress was slow and financial results remained disappointing.
New CEO Lip-Bu Tan, who took the helm last month, is moving quickly to reset Intel’s strategy. The company recently sold a majority stake in its programmable chip unit, Altera, and is now focusing on rebuilding engineering talent and revamping its manufacturing processes.
“These decisions are not easy, but they are necessary to put Intel back on a path to growth and innovation,” Tan said in a statement.
Intel’s layoffs are part of a broader trend of job cuts across the tech industry, as companies adjust to shifting market realities and economic pressures. Other major tech firms, including Google, Microsoft, and Unity, have also announced significant layoffs in recent months.
Intel is expected to provide more details on its restructuring plans and future strategy during its upcoming first-quarter earnings call.
