Intel to announce plans this week to cut over 20% of staff
Intel is poised to announce plans this week to cut more than 20 per cent of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter.
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The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private. It would be the first major restructuring under new chief executive officer Tan Lip-Bu, who took the helm last month.
The cutbacks follow an effort last year to slash about 15,000 jobs – a round of lay-offs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.
A representative for Intel declined to comment.
Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The Santa Clara, California-based company lost its technological edge and has struggled to catch up with
Nvidia in
artificial intelligence (AI) computing. That contributed to three straight years of sales declines and mounting red ink.
Intel CEO Tan Lip-Bu. Photo: Handout
Tan, a veteran of Cadence Design Systems, has vowed to spin off Intel assets that are not central to its mission and create more compelling products. Last week, the company agreed to sell a 51 per cent stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal.
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