Intel Layoffs 2025 Alarm! Over 20% Jobs Cut in Major Restructuring Under New CEO Lip-Bu Tan: Bloomberg Report

United States (US) chip giant Intel Corporation is preparing to cut over 20% of its workforce in a major restructuring plan, according to a report by Bloomberg. The move comes as the company looks to reduce bureaucracy and rebuild its focus on engineering under its new Chief Executive Officer (CEO), Lip-Bu Tan.

This would be the first significant revamp in Intel corp. under CEO Tan who only took office last month. The layoffs are planned to improve efficiency and streamline operations at a time when Intel is having difficulty regaining its competitive advantage in the semiconductor sector according to the report.

Last year, Intel had already cut about 15,000 jobs, and by the end of 2024, its employee count had fallen to 1.08 lakh from 1.24 lakh a year earlier.

Intel has been facing stiff competition, particularly in the AI chip segment, where companies like Nvidia have taken the lead. The report mentions that Intel has seen three consecutive years of declining sales, along with delays in several major projects, including a large manufacturing plant in Ohio.

To focus on core businesses, Intel recently agreed to sell a 51% stake in its programmable chip unit Altera to Silver Lake Management, a private equity firm. CEO Tan has also hinted at spinning off more non-core assets.

Speaking at the Intel Vision 2025 event last month, Tan said the company needs to regain lost engineering talent and realign its manufacturing with future demands. He added, "It won't happen overnight, but I know we can get there."

Intel First Quarter Results

Intel is expected to announce its first-quarter results on Thursday, where further details about the restructuring could be revealed. According to analysts, while the worst of the revenue decline may be behind, a return to previous sales levels could take years.

The restructuring also comes after the exit of former CEO Pat Gelsinger, who tried to revive the company with major investments in manufacturing but could not turn things around in time.

Intel's future now depends on how well it can adapt to the fast-changing chip industry and win back its lost ground.