Intel’s New Boss to Lay Off Over 20,000 Employees?

U.S. chipmaker Intel is reportedly preparing to lay off 20% of its workforce this week, according to a Bloomberg report citing sources familiar with the matter. The move is part of a broader effort to "eliminate bureaucracy," streamline operations, and rebuild an engineering-driven culture, sources told Bloomberg.

This major workforce reduction comes just a month after Lip-Bu Tan assumed the role of CEO (Chief Executive Officer) in March. Faced with three consecutive years of declining sales, Tan has signalled a bold turnaround strategy, including spinning off non-core assets and focusing on product innovation.

“Intel needs to restore its lost engineering talent, strengthen its balance sheet, and align manufacturing more closely with customer needs,” said Tan—former CEO of Cadence Design Systems Inc.—during the Intel Vision conference in March.

Rival NVIDIA has surged ahead in the AI chip segment, further intensifying pressure on Intel to reinvent itself.

Intel previously laid off more than 15,000 employees in August 2024, reducing its global workforce from 124,800 in 2023 to 108,900. If the new round of cuts affects 20% of the current staff, over 20,000 employees could be impacted.

Intel is scheduled to release its Q1 earnings report on Thursday, April 24.