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Intel layoffs part of CEO’s bigger restructuring plan

The upcoming layoffs at Intel’s factories are part of a larger plan set in motion by the company’s new CEO, Lip-Bu Tan, who took over in March this year. The job cuts are a major step in his efforts to reduce costs and reshape the company’s future.

In April, Tan announced that more than 20 per cent of Intel’s total workforce would be cut as part of a complete restructuring. His goal is to remove unnecessary layers of management and bring the company’s focus back to strong engineering and innovation. “I believe the best leaders achieve more with fewer people,” Tan wrote in a memo to employees.

Since 2023, Intel’s total number of employees has already dropped from nearly 125,000 to about 109,000 by the end of 2024. Intel is also facing financial difficulties. In the first quarter of 2025 alone, the company reported a loss of USD 821 million.

Intel faces third round of major layoffs in one year

Back in August 2024, Intel cut around 15,000 jobs over 15 per cent of its workforce at the time. That round included buyouts, early retirement packages, and voluntary exits as part of a USD 10 billion cost-cutting effort. Then in early 2025, new CEO Tan announced even deeper cuts of over 20 per cent of the company’s workforce as part of a major push to streamline operations and rebuild Intel’s engineering culture.

The most recent layoffs target Intel’s foundry division, but they come amid broader struggles. The company is under heavy pressure from rivals like Nvidia, which is leading in artificial intelligence (AI) chips. Intel, meanwhile, has been slow to catch up in that area and is also losing ground in the PC and data center markets.

Another challenge has been delays in receiving federal funding under the U.S. CHIPS Act. Intel was promised a USD 7.9 billion subsidy, but much of that support is now uncertain as the Trump administration re-examines existing award commitments.

While the job cuts will affect many across Intel’s global operations, some roles especially engineers working on cutting-edge chip-making technologies and technicians handling key equipment are expected to be safe. However, jobs made less relevant due to automation or organizational changes may be at risk.