Intel reportedly plans to reduce its workforce by 20%

Intel is reportedly preparing to announce a significant reduction in its workforce, potentially laying off around 21,000 employees, which accounts for 20% of its staff.

According to a Bloomberg report, the job cuts are part of a broader strategy to streamline the company by reducing bureaucratic hurdles and focusing more on engineering. Intel's representative, however, did not provide a comment to Bloomberg regarding these plans.

The layoffs are expected to happen under the leadership of new CEO Lip-Bu Tan, who recently succeeded interim leaders David Zinsner and Michelle Johnston Holthaus last month. This change in leadership followed the retirement of former CEO Pat Gelsinger in December 2024.

During Gelsinger's time at Intel, the company had already reduced its workforce by 15,000 employees as part of a $10 billion cost-cutting initiative, a move announced in Intel's Q2 2024 financial report . Gelsinger had described these measures as some of the most significant transformations in Intel's history, emphasizing the need for the company to adjust its financial structure in line with its operational goals.

Gelsinger explained that Intel's revenue did not grow as anticipated and the company had yet to capitalize on emerging trends such as AI. He noted, "Our costs are too high, our margins are too low," highlighting the necessity of realigning Intel's business model.