Intel to Lay Off Over 21,000 Employees, Over 20% Of Its Workforce

Bloomberg reported that Intel is planning on laying off over 21,000 employees, more than 20% of its workforce. A person familiar with the matter said it was part of a restructuring strategy under the new CEO Lip-Bu Tan.

According to Bloomberg’s report, an anonymous source explained the job cuts are part of a “streamline management and rebuild an engineering-driven culture.” This layoff wave comes just a few months after another layoff announcement last year.

In August 2024, CEO Pat Gelsinger announced a massive layoff of over 15,000 employees, over 15% of the workforce at the time, to reduce costs.

Intel hasn’t made an official announcement yet, however, Tan shared part of his vision a few weeks ago at Intel Vision 2025.

The CEO said he assumed the role knowing that there were many challenges to face and that the company wasn’t performing well, but that he loves the company and wants it to succeed.

“It won’t be easy, we have had a tough period for quite a long time at Intel,” he said. “We fell behind on innovation, as a result, we have been too slow to adapt and meet your needs.”

Tan said he wants to focus on innovation, meeting customers’ needs, and building an engineering-driven company.

According to a recent Reuters exclusive, Tan is focused on improving performance in manufacturing by building AI chips for models, robotics, and software.

Intel is struggling to win the AI chip race and the new CEO is making difficult decisions with a new approach to succeed in the market. Other tech giants have also been developing hardware for AI products. Meta already started testing its new in-house chips, and TSMC recently announced a new partnership with the U.S. government to build chip facilities in Arizona. And, despite losing nearly $600 billion in market value in January, Nvidia remains the most powerful company in the industry.