Intel Corporation’s Bold Move: Cutting 21,000 Jobs Under New CEO Lip-Bu Tan
In a strategic restructuring plan, Intel Corporation is set to slash over 21,000 jobs—equivalent to 20% of its current workforce—as recently appointed CEO Lip-Bu Tan takes the helm and initiates significant changes, as reported by Bloomberg.
This drastic decision comes shortly after Intel’s previous round of layoffs, which saw 15,000 employees being let go. The workforce reduction brings the company’s headcount down to 108,900 from 124,800 in 2023. This move signals the beginning of a major transformation under Tan’s leadership, following the departure of former CEO Pat Gelsinger.
Tan, a former CEO of Cadence Design Systems, is renowned for his bold strategic vision and has been vocal about the need for a comprehensive reset at Intel.
With fierce competition from rivals like Nvidia, particularly in the AI chip market, Intel is striving to reinvent itself after years of waning market influence.
Recently, Intel made a significant shift by selling a majority stake in its programmable chip division, Altera, to private equity firm Silver Lake. This move underscores a change in focus under Tan’s direction.
Emphasizing the importance of rebuilding engineering talent, revamping manufacturing processes, and restoring financial stability, Tan is determined to steer Intel towards a new trajectory.
Intel is due to announce its first-quarter earnings later this week, providing Tan with an opportunity to outline the company’s future direction.
Tan steps into a company that once reigned supreme in the semiconductor industry but has faced challenges in recent years.
Under Gelsinger’s leadership, Intel sought to establish itself as a key player in contract chip manufacturing, akin to TSMC. However, these efforts hit roadblocks, with plans for a large facility in Ohio currently on hold and partnerships with industry giants like TSMC losing momentum.
Intel’s struggles to gain a foothold in the rapidly expanding AI chip market allowed Nvidia to seize the lead and claim the title of the world’s most valuable chipmaker.
In his inaugural address as CEO, Tan acknowledged the tough road ahead and emphasized that the company’s revival will not be swift or simple. Nonetheless, the significant layoffs and early strategic moves indicate his readiness to make difficult choices to realign Intel.
Intel’s announcement contributes to a series of tech sector layoffs in 2025 as companies adapt to evolving economic conditions and heightened industry competition.
Last week, Google, a subsidiary of Alphabet Inc., also underwent layoffs, affecting hundreds of employees in its Platforms and Devices division. Teams responsible for Android, Pixel phones, and the Chrome browser were impacted as part of ongoing restructuring efforts to streamline operations following internal team mergers and an earlier voluntary exit program.
