Intel prepares new wave of layoffs totaling 20% of its workforce
The semiconductor giant plans to eliminate 20,000 jobs or more across the company.
Intel chip sample on display during Computex 2024 in Taipei, Taiwan.
Intel plans to eliminate 20,000 jobs or more across the company, Bloomberg reported Tuesday night, citing an unnamed source familiar with the chipmaker's plans.
The cuts come on the heels of last year's mass layoffs at the struggling semiconductor company and the arrival of a new chief executive, Lip-Bu Tan, former chief executive of Cadence Design Systems. The move could bolster Intel's finances, but risks dismantling the company's technology capabilities.
Bloomberg stated that Intel plans to announce the cuts this week, although the tech giant declined to comment on the matter. The company has a history of layoffs in its cost-cutting plans.
In October 2022, the semiconductor pioneer planned staffing measures to reduce the workforce from 131,900 to 124,800 employees by the end of 2023. In August 2024, the company also cut 15 % of its positions.
Intel's restructuring under Lip-Bu Tan
These layoffs would be the first after Lip-Bu Tan took over as CEO of Intel. Recently, the top executive restructured the company's leadership with network chips director, Sachin Katti, who was promoted to chief technology officer and chief artificial intelligence officer.
In addition to this promotion, Intel's data center and AI chips group, along with the PC chips group, were notified that they will report directly to Tan.
Intel lagging in AI
Last year, the Santa Clara, Calif.-based company launched a special plan to lay off 15% of staff and lost its place in the celebrated Dow Jones stock index to its competitor Nvidia.
The company had a stock market plunge, and its market cap was slashed by more than half (57%) in 2024.
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