intel faces major shakeup: over 20% workforce reduction planned

2025-04-23 general

Santa Clara, Wednesday, 23 April 2025.
Intel is preparing for a significant restructuring. The company is planning to lay off over 20% of its employees. This move aims to streamline operations and revitalize its engineering focus. New CEO Lip-Bu Tan, appointed last month, is spearheading these changes. He aims to address the company’s struggles in the competitive semiconductor market. This includes catching up with rivals like Nvidia in artificial intelligence. The announcement precedes Intel’s first-quarter earnings report scheduled for Thursday. The company had 108,900 employees at the end of 2024.

restructuring under new leadership

Lip-Bu Tan aims to reverse Intel’s declining sales and technological setbacks [6]. He plans to spin off non-core assets and develop more competitive products [6]. Last week, Intel sold a 51% stake in its programmable chips unit, Altera, to Silver Lake Management [6]. This move aligns with Tan’s strategy to streamline Intel’s focus [6]. He emphasized the need to improve the balance sheet and better align manufacturing with customer needs [6]. These changes signal a strategic shift that could impact Intel’s future market position and stock performance.

previous job cuts and cost reduction

Intel’s planned layoffs follow a reduction of approximately 15,000 positions announced in August 2024 [2][5]. These earlier cuts targeted administrative, sales, marketing, and support roles [5]. The 2024 job cuts were part of a $10 billion cost-reduction plan [2]. The company’s high costs, shrinking margins in PC and data center segments, and expensive AI chip development drove these cuts [2]. The upcoming layoffs could further impact investor sentiment depending on which areas are affected and how efficiently the restructuring is executed.

market context and investor considerations

The broader market has seen significant layoffs across various sectors [3]. Since January 1, 2025, over 1,247 companies have announced mass layoffs [3]. This context suggests that Intel’s actions align with industry trends to optimize efficiency [3]. Investors should monitor Intel’s Q1 earnings report on Thursday for further insights [2][6]. The company’s ability to execute its restructuring plan and regain market share in key segments like AI will be crucial for long-term stock value [6]. Any potential short term stock volatility may present an opportunity for long term investors.

Bronnen

Layoffs Restructuring