Over 20% of Intel's Workforce will be Let Go this Week

According to a media report, tech giant Intel Corporation intends to announce layoffs at some point this week. The report further revealed that the job cuts would involve a personnel reduction of more than 20% in order to "eliminate bureaucracy".

Intel's layoffs are intended to "streamline management and rebuild an engineering-driven culture". The chip giant undergoes significant reorganisation under its new CEO, Lip-Bu Tan who took over company's operations in March 2025.

In an effort to turn around the faltering chipmaker, more than 20% of Intel's workforce would be let go. After years of lagging behind Nvidia in artificial intelligence (AI) processors, Tan hopes to challenge competitors with this move.

Dropping Sales Figures Resulting in Layoffs

Intel has previously implemented layoffs in an effort to improve its financial status. Up to 15,000 workers were let go in August 2024, bringing the company's total workforce to 108,900 at the end of the year. Intel employed 124,800 people in 2023, the year before.

Due to Nvidia's technological advancements, the Santa Clara-based traditional chipmaker has recorded three years in a row of dropping sales and red statistics. Tan has promised to develop more interesting products and spin off Intel assets that aren't essential to its purpose.

Tan said at the Intel Vision conference in March that Intel needed to repair its balance sheet, replace the engineering expertise it lost, and better align its manufacturing processes with the demands of prospective customers.

Tan will have a crucial chance to further lay out his strategic perspective on 24 April when Intel releases its first-quarter earnings. Wall Street does not anticipate that Intel will return to its previous sales heights very soon, if at all, even though analysts say the company's revenue drops are now at their most severe.

 Tan was hired after Pat Gelsinger, the previous CEO, left last year due to his inability to carry out his recovery strategy.

Gelsinger had adopted a bold and costly plan to increase Intel's production capacity and re-establish the company as a significant force in the custom chip industry.

Layoffs have Become a Common Scenario in 2025

With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025. Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.

Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.

 According to reports, AI-led restructuring and performance-based terminations are part of the corporations' goals to increase the effectiveness of their personnel.