Intel plans to cut over 20% workforce amid restructuring

Intel is reportedly preparing to lay off over 20% of its workforce as part of a sweeping restructuring strategy under new CEO Lip-Bu Tan. The move aims to eliminate bureaucracy, streamline management, and rebuild an engineering-focused culture to help Intel regain competitiveness, especially against AI chip leaders like Nvidia and TSMC. These cuts, coming after a previous 15% reduction in 2024, could reduce Intel’s workforce to around 80,000 employees, marking a significant drop from its 2022 peak. Tan’s initiatives also include flattening the leadership hierarchy, spinning off non-core units, and revamping AI and manufacturing operations. The restructuring comes amid three years of declining sales and mounting challenges in the AI chip market. Intel’s upcoming earnings report is expected to offer further details on the impact and direction of these changes.