According to the reports surfacing on the internet, Intel is planning to initiate major layoffs this week, which may affect around one-fifth of its workforce, resulting in job cuts. Intel has been underperforming financially for a long period of time. This decision comes weeks after Intel CEO Lip-Bu Tan was appointed. It is reported that the newly appointed CEO is focused on reversing the series of decisions that led the company to this state. If you are someone who wants to know more about the Intel layoffs and their impact, the following article is for you.
Intel Decides To Lay Off 20,000 Employees
The layoffs at Intel that are reportedly scheduled for this week may impact over 20,000 employees. This is at least one-fifth of Intel’s entire workforce. It has also reportedly decided to aim at streamlining its internal operations. It is going to reduce what the company, in the reports, has called “excessive bureaucracy.” According to what the reports suggest, the layoffs that will impact over 20,000 employees are a part of the broader plans that aim to make the company return to its engineering roots. The new CEO, Lip-Bu Tan, is at the top of these layoffs.
Intel Announces Sale Of Stake In Altera
The company has recently announced the sale of its 51% stake in the programmable chip unit Altera. It has reportedly sold off its stake to Silver Lake Management. The move is being considered as a major step toward sharpening the focus of the company and revitalizing its position in the semiconductor market.
How Did The Earlier Job Cuts Impact The Employees?
This is definitely not the first time Intel is going to cut its workforce under financial pressure. The company laid off around 15% of its workforce back in August 2024. The layoffs impacted around 15,000 employees, and the total headcount of its workforce came down to 109,000 from 125,000 in the previous year. The cuts in August 2024 mainly targeted those employees who were a part of the non-engineering functions. This includes departments like sales, marketing, and support staff. It was done so that the company could preserve its core technical teams. It is still not clarified whether or not the upcoming layoffs will impact employees working in engineering roles.
Intel And Its Financial Challenges Over The Years
Intel was once considered the dominator of the semiconductor industry. However, its status in the market kept decreasing as it faced several challenging quarters in the past years. It has lagged behind other competitors in fields like Artificial Intelligence and chip manufacturing. Nvidia and TSMC are their two rivals that are marching forward by the capitalization of growing demand for GPU-driven AI applications and next-generation semiconductor fabrication technologies. Intel has been facing challenges in maintaining its position in the consumer PC market and data centers as well. The next financial report of Intel is due on the 24th of April this week, and experts suggest a decline in sales yet again.
Difference Between The Approaches Of Pat Gelsinger And Lip-Bu Tan
Lip-Bu Tan was appointed as the new Chief Executive Officer of Intel after Pat Gelsinger. The former CEO of the company, Pat Gelsinger, led it through several costly yet unsuccessful attempts to recapture Intel’s leadership. He expanded the manufacturing base of the company and entered into the contract chip-making business. His strategy included building new fabs in the US as well as Europe, costing billions. However, execution delays and rapidly increasing costs prevented him from achieving that goal.
On the other hand, Lip-Bu Tan is using a more measured and efficiency-focused approach to recover from the financial crisis. According to what the insiders have reported, Tab considers bloated management as the main barrier to innovation. According to the reports, he has emphasized fastening the decision-making process during internal communications.
FAQs
Q1. Why is Intel laying off employees in 2025?
Intel is laying off around 20,000 employees—roughly 20% of its workforce—to cut costs and reduce internal bureaucracy. This move is part of CEO Lip-Bu Tan’s plan to refocus the company on core engineering and improve efficiency.
Q2. Who is leading the Intel layoffs in 2025?
The layoffs are being led by Intel’s new CEO, Lip-Bu Tan. He is shifting the company’s strategy toward streamlined operations and faster decision-making, unlike his predecessor Pat Gelsinger’s expansion-heavy approach.
Q3. Which Intel departments are affected by the layoffs?
Intel has not officially confirmed which departments will be affected in 2025. However, past layoffs in 2024 mainly impacted non-engineering roles such as sales, marketing, and administrative functions.
Q4. How many employees does Intel have in 2025?
As of early 2025, Intel’s workforce is approximately 109,000. This figure will drop significantly following the reported layoffs of 20,000 employees.
Q5. What’s the difference between Pat Gelsinger and Lip-Bu Tan’s strategies?
Pat Gelsinger focused on large-scale manufacturing expansion, while Lip-Bu Tan is prioritizing cost-cutting, reducing management layers, and streamlining internal processes to boost innovation.
