Intel is reportedly planning to reduce its workforce by 20%

Update, April 25, 2025: Intel has announced impending job cuts planned to commence in the second quarter of 2025, though it hasn't specified exactly how many employees will be let go.

CEO Lip-Bu Tan communicated via an email to staff after the disclosure of the company's first-quarter financial outcomes. He mentioned the necessity to downsize the workforce to curb "organizational complexity" and eradicate "unnecessary bureaucracy".

Tan expressed a strong belief in effective leadership, asserted that efforts will be made to empower top talent, and ensured that decisions and priorities will be addressed with greater ownership.

According to Tan, significant structural changes are inevitable, leading to a decrease in workforce size. These adjustments will commence in the upcoming quarter with the intention of progressing quickly in the following months.

Additionally, Intel plans to modify its hybrid work policy; employees will now be expected to work four days onsite each week starting September 1, 2025. Tan cited "uneven adherence" to the current policy and underscored the importance of in-person collaboration for enhanced productivity and decision-making.

Original story, April 24, 2025: According to a report from Bloomberg, Intel plans to execute another significant reduction in its workforce by 20%, implying approximately 21,000 job cuts.

The report highlights Intel's strategy to reshape the organization, aiming to reduce bureaucracy while fostering a culture focused on engineering.

The prospective layoffs are set under the leadership of newly appointed CEO Lip-Bu Tan, who succeeded interim leaders David Zinsner and Michelle Johnston Holthaus just last month. Pat Gelsinger, the former CEO, retired in December 2024.

During Gelsinger's leadership, Intel saw a reduction of 15,000 jobs in August 2024 as part of a $10 billion cost-cutting initiative, as noted in the announcement of its second quarter 2024 financial performance. This move was considered one of the company's most consequential changes.

Gelsinger emphasized the need for alignment between Intel's cost structure and its operational model, considering the absence of anticipated growth in revenues and the low margins alongside high costs. Furthermore, Intel had not yet reaped benefits from emerging trends like AI, substantiating the rationale for these structural changes.