Intel is reportedly set to reduce its global workforce by more than one-fifth, affecting over 20,000 roles, as part of a wide-ranging cost rationalisation and organisational overhaul. According to reporting by Bloomberg News, the layoffs are scheduled to be announced this week, marking one of the largest workforce reductions in the company’s recent history. This development follows a prior job cut of around 15,000 positions in 2024.
The restructuring plan is the first significant action taken by Intel’s newly appointed CEO Lip-Bu Tan, who assumed leadership in March 2025. According to sources cited by the publication, the move primarily targets layers of middle management, with a view to establishing a more direct and efficient reporting structure within Intel’s engineering and product teams.
Intel is aiming to flatten its corporate hierarchy, with major semiconductor groups now reporting directly to the CEO. This adjustment forms part of a broader effort to enhance execution speed and agility across key business units, including the chipmaker’s AI and advanced manufacturing divisions.
In 2024, the company announced a cost optimisation strategy that aimed to save $10bn, prompted by increasing competition and narrowing margins across its PC and data centre segments. The upcoming wave of layoffs is expected to further support these financial objectives as Intel attempts to reposition itself in a market that has rapidly shifted towards AI-driven hardware demand.
As of the end of 2024, Intel employed approximately 108,900 staff globally. The forthcoming reduction will significantly reduce this number, with updates anticipated alongside Intel’s Q1 financial results due to be published later this week.
While Intel has not officially confirmed the scale or scope of the planned cuts, the timing aligns with internal initiatives to reprioritise capital allocation and streamline strategic focus areas.
Intel responds to rising industry competition
Intel’s restructuring arrives amid increasing pressure from rivals such as Nvidia, which has seen accelerated growth driven by demand for graphics processing units (GPUs) and AI accelerators. Industry analysts view Intel’s current direction as a response to shifting market conditions and a necessary step to restore competitiveness in a sector characterised by rapid technological advancement and high capital intensity.
The decision to implement workforce cuts of this scale also follows reports of declining shipment volumes in client computing segments and slowing enterprise demand.
Intel has yet to issue an official statement addressing the specifics of the job reductions. However, internal communications and organisational changes suggest that the company is moving to consolidate operations, remove structural redundancies, and sharpen its focus on high-margin, high-growth areas of the chip design and manufacturing ecosystem.
Recently, Intel signed a deal worth $4.6bn to divest a 51% stake in its Altera unit to Silver Lake. The company will retain the remaining 49%, allowing it to remain involved in Altera’s future performance while concentrating on its core business.
Read more: Intel to divest 51% stake in Altera division to Silver Lake for $4.46bn
