Intel Reportedly Plans Another Wave of Layoffs Targeting Management

Intel Corporation is reportedly preparing for another round of layoffs, building on the significant job reductions of the previous year when 15,000 employees were let go. This new initiative is expected to focus primarily on the management sector of the company, which has been deemed excessively staffed and less productive.

According to insider information cited by Bloomberg, Intel aims to reduce its workforce by more than 20%, which could translate to over 20,000 positions. The announcement regarding these layoffs is anticipated to occur within the week, as the company seeks to streamline operations and enhance its competitiveness in the semiconductor market. The new CEO, Lip-Bu Tan, has prioritized this restructuring effort to revitalize the company.

At the end of 2024, Intel's workforce was reported to be over 100,000 employees, meaning this latest round of cuts could surpass last year's layoffs. The company had already spent billions on severance packages during the previous restructuring, which included the downsizing of various departments.

This restructuring marks the first major initiative under CEO Lip-Bu Tan, who succeeded Pat Gelsinger in March. During Gelsinger's tenure, Intel initiated plans to transition into a contract chip manufacturer and announced the construction of several new semiconductor facilities, including one in Germany. However, ongoing financial struggles have forced the company to pause the German project and delay investments in new plants within the United States.

To restore profitability, Tan is continuing the previously established aggressive strategy aimed at reducing company size. Recently, Intel sold off its stake in FPGA manufacturer Altera for over $4 billion, which provided much-needed liquidity. In addition, the company has divested various sectors, including memory divisions, mining hardware, mini-PCs, and networking products.

Tan, who had previously recommended prioritizing management cuts during his time on the board, rejoined the board after his appointment as CEO. His strategies emphasize the need for leaner operations to maintain Intel's competitiveness in a rapidly evolving market.