Tech giant Intel Corporation is planning to cut more than 21,000 jobs this week, as part of a major restructuring move.
This comes less than a year after the company laid off 15,000 workers in an earlier cost-cutting effort.
A Bloomberg report, which cited a source familiar with the matter, said the layoff represents over 20% of Intel’s current workforce. At the end of 2024, Intel had about 108,900 employees, already down from 124,800 the year before.
This new round of job cuts is the first big decision taken by Intel’s new Chief Executive Officer, Lip-Bu Tan, who took over leadership last month.
Tan, the former CEO of Cadence Design Systems, has said the company needs a fresh start. He believes Intel must recover its lost position in the chip industry, especially in artificial intelligence (AI), where competitors like Nvidia have taken the lead.
Just last week, Intel sold 51% of its programmable chip unit, Altera, to private equity firm Silver Lake, a move believed to be part of efforts to raise funds and refocus its business.
Tan has also spoken about the need to bring back top engineering talent, improve Intel’s manufacturing process, and fix its financial problems.
Intel is expected to release its first-quarter financial results on Thursday. Many analysts believe this will be Tan’s chance to explain more about his recovery plans for the company.
Although some experts think Intel’s revenue decline may have reached its lowest point, the company still faces a tough road ahead. A full recovery is not expected anytime soon, as Wall Street remains cautious about the company’s future.
Tan, 65, became CEO after Pat Gelsinger stepped down. Gelsinger had tried to turn Intel into a major contract chipmaker like TSMC, but his plans did not move as quickly as hoped. One of his key projects — a large chip manufacturing plant in Ohio — is currently on hold.
In his first public comments as CEO, Tan admitted that the company faces serious challenges. He said, “This turnaround will not be quick or easy,” but added that he is ready to make bold changes to bring Intel back to the top.
