Intel reportedly plans to reduce its workforce by 20%

Update, April 25, 2025: Intel has announced its intention to start workforce reductions in the second quarter of 2025, though specifics on the number of employees impacted remain undisclosed.

CEO Lip-Bu Tan communicated via an email to employees after releasing the Q1 2025 financial results. The email indicated that the workforce reduction is part of an effort to simplify organizational structures and reduce excess bureaucracy.

Tan stated, "Our focus is on refining engineering processes while eliminating unnecessary layers. A more streamlined approach is essential for operational efficiency."

"Effective leadership is about achieving the most with the smallest team possible," he continued. "Our strategy will include giving key talent more responsibility and encouraging them to take ownership of significant initiatives."

He acknowledged that these initiatives would necessitate tough decisions affecting the company's workforce size to ensure future stability.

The process is set to begin in the second quarter and will proceed swiftly over the coming months, according to Tan.

The restructuring plan involves careful targeting of efforts while staying competitive and retaining essential talent, allowing leaders to make priority-based decisions.

Additionally, Intel is updating its hybrid work policy. By September 1, 2025, employees will be required to work onsite four days per week, an increase from the current three days.

Tan emphasized the importance of office presence for enhanced collaboration, communication, and decision-making efficiency.

Original story, April 24, 2025: Reports suggest Intel is gearing up for a significant round of layoffs, potentially affecting 20% of its workforce, which equates to about 21,000 jobs.

This information emerged from a Bloomberg report. According to their source, Intel's objective is to streamline operations and foster an engineering-centric culture by reducing bureaucratic layers.

Intel's spokesperson refrained from commenting on these claims for Bloomberg.

Lip-Bu Tan, who stepped into the CEO position recently from interim CEOs David Zinsner and Michelle Johnston Holthaus, is leading these changes.

Previously, Pat Gelsinger retired as CEO in December 2024. During his leadership, the company executed layoffs affecting 15,000 positions in August 2024. This was part of a $10 billion cost-cutting measure unveiled in the second quarter of 2024.

Gelsinger described these actions as among the most significant transitions in Intel's history, emphasizing the need to align costs with the new business model due to unmet revenue growth expectations and low margins.