Tech giant Intel planning substantial workforce reduction exceeding 20%
Rewritten Article:
Get ready for some big changes at Intel Corporation, as they're planning to axe over 20% of their workforce in a bid to ditch bureaucracy and establish an engineering-focused culture. An anonymous source with inside knowledge revealed these plans, stating that this is the initial step under new CEO Lip-Bu Tan.
This move comes after an attempt to trim down the workforce by around 15,000 jobs last year. Intel's employee count dropped from 124,800 in 2024 to 108,900 at the end of 2025.
Santa Clara, California-based Intel is in dire need of a makeover. The company has been losing its technological edge and playing catch-up with rivals, particularly Nvidia Corporation in the artificial intelligence computing field. This has led to three consecutive years of sales decreases and piling losses.
Tan, the new CEO, has promised to sell off assets that don't align with the company's main mission and create more enticing products. As a step towards this goal, the company recently agreed to sell a 51% stake in its programmable chips unit Altera Corporation to Silver Lake Management LLC.
Intel is facing a significant talent drain and needs to bring in new engineering brains. They also need to refine their balance sheet and align their manufacturing processes to better suit their customers' needs.
Tan said as much last month at the Intel Vision conference. The upcoming first-quarter results, scheduled today, present an opportunity for Tan to outline more of his game plan.
Although Intel seems to have overcome its worst revenue slumps, as per Wall Street's estimates, analysts aren't projecting a return to previous sales levels for several years, if at all.
Here are the key changes expected from Intel under Tan:
1. Workforce Reductions:Intel is planning major layoffs, potentially affecting up to 20,000 employees. This follows an earlier round of layoffs in 2024 that shed 15,000 jobs.
2. Financial Targets:Intel aims to slash $1.5 billion in operating expenses, with:• $500 million cut by 2025 (reducing operating expenses to $17 billion)• An additional $1 billion reduction by 2026 (bringing operating expenses down to $16 billion)
3. Strategic Asset Moves:- Intel Capital: Previously aimed to spin off the venture arm, but has now decided to sell off existing holdings and reduce new investments instead.- Altera: Sold a 51% stake in the programmable chip unit to Silver Lake Management.- Non-Core Divestitures: Intel is actively phasing out businesses considered peripheral to core chipmaking operations.
4. Cultural Shift:Tan is emphasizing speedier decision-making and engineering priorities, aiming to eradicate bureaucratic barriers that hinder innovation. The restructure process, which began in Q2 2025, is being implemented over several months.
- Intel, under new CEO Lip-Bu Tan, has agreed to major layoffs, which could impact up to 20,000 employees as part of a plan to ditch bureaucracy and establish an engineering-focused culture.
- In an attempt to refine their balance sheet and align manufacturing processes, Intel aims to slash $1.5 billion in operating expenses, with $500 million cut by 2025 and an additional $1 billion reduction by 2026.
- As part of strategic asset moves, Intel has sold a 51% stake in its programmable chips unit Altera Corporation to Silver Lake Management LLC, and is also in the process of phasing out businesses considered peripheral to core chipmaking operations.
- Tan is not only addressing the workforce but also focusing on a cultural shift, emphasizing speedier decision-making and engineering priorities to eradicate bureaucratic barriers that hinder innovation. The restructuring process is being implemented over several months.
