Intel will cut more than 20,000 job positions

Intel Corporation, according to Bloomberg, is preparing a large-scale reduction of staff – more than 20% of the staff, which may affect more than 20 thousand employees. This is the largest wave of layoffs in the company’s history and part of a strategic restructuring plan initiated by the new CEO Lip-Bu Tan.

At the end of 2024, Intel employed about 109 thousand people. According to insider information, an official announcement of the reduction is expected this week, probably simultaneously with the publication of a quarterly financial report.

Lip-Bu Tan, who took over as Intel’s chairman only last month, intends to radically change the structure of the corporation. His plan involves the elimination of unnecessary management, the elimination of duplicate roles and a return to an engineering culture as the main priority. The goal is to simplify business processes and focus on key technological areas after a long-term crisis, in particular, lagging behind competitors in the field of chip production.

This is the second wave of mass layoffs in two years: in 2024 Intel laid off about 15 thousand people, mainly from administrative and commercial departments. This time, according to analysts, technical specialists, including engineers, may also be at risk, although this information has not yet been officially confirmed.

Observers expect that the next profit and loss report may confirm the need for such radical steps. Against the background of increased competition from AMD, Nvidia and Asian chip manufacturers, as well as falling demand for PCs, Intel is forced to carry out a large-scale transformation.