Intel is preparing for one of the most significant workforce reductions in its history, with plans to cut more than 20 percent of its global staff, according to a Bloomberg report that first broke the story. The move—expected to be announced on Thursday, April 24, alongside Intel’s Q1 earnings—marks the first major restructuring under newly appointed Chief Executive Officer Lip-Bu Tan.
A Bold Reset Amid Prolonged Struggles
The layoffs, affecting over 20,000 employees, are aimed at eliminating what Tan reportedly views as excessive bureaucracy within the organisation. Intel ended 2024 with approximately 108,900 employees, following a previous round of layoffs in August that cut 15,000 roles. The upcoming cut, however, is notably more drastic and represents nearly a fifth of the entire workforce.
Tan, a seasoned semiconductor executive and former CEO of Cadence Design Systems, assumed leadership at Intel in March 2025. He inherits a company facing mounting pressure on multiple fronts—declining revenues, eroding market share, and a steep drop in investor confidence. Intel’s stock plunged 60 percent during 2024, and the company reported a $1.6 billion quarterly loss towards the end of the year. Revenue for Q4 2024 dropped by 7 percent year-on-year.
Engineering at the Core
According to Bloomberg’s source, Tan is focused on restoring an “engineering-driven culture” within Intel. The company, once known for its innovation in chip design and manufacturing, has in recent years ceded ground to rivals like AMD and NVIDIA. Tan reportedly believes that revitalising Intel’s engineering base and flattening layers of middle management are crucial to reclaiming its competitive edge.
This strategic realignment includes shifting focus towards what Tan describes as “world-class” products and foundry services. He has already begun divesting from parts of the business deemed non-essential to this mission, including the partial sale of Intel’s stake in Altera, its FPGA business.
In a message to employees following his appointment, Tan wrote: “Together, we will work hard to restore Intel’s position as a world-class products company, establish ourselves as a world-class foundry and delight our customers like never before.”
Middle Management Under the Microscope
The cuts are expected to target Intel’s middle management, which has been criticised both internally and externally as “bloated.” This echoes broader industry trends: Microsoft is reportedly planning a similar reorganisation to increase the ratio of engineers to managerial staff. Tan, in a recent town hall, is said to have acknowledged the need for “tough decisions”—language that now appears to have foreshadowed the forthcoming layoffs.
The emphasis on reducing managerial overhead may help Intel move faster in responding to market needs. However, analysts remain sceptical about whether workforce reductions alone can revive the company’s fortunes. Some project that even if Intel successfully implements its turnaround strategy, it may take several years before the company regains its former stature in the semiconductor industry.
Industry Implications
Intel’s restructuring is part of a broader narrative playing out across the tech sector, where legacy firms are attempting to reinvent themselves amid fast-moving competition and shifting market dynamics. For Intel, this means doubling down on foundry services, reinvesting in R&D, and shedding any part of the organisation that does not directly contribute to its renewed core mission.
Whether this latest move will produce the intended results remains to be seen. But it is clear that under Lip-Bu Tan’s leadership, Intel is pivoting sharply—away from bureaucracy and towards a leaner, more technically-focused enterprise.
With its first-quarter results due tomorrow, stakeholders will be watching closely not just for financial figures, but for a clearer picture of how Tan plans to steer Intel through what may be the most pivotal period in its history.
Follow Us
Mithun Mohandas
Mithun Mohandas is an Indian technology journalist with 10 years of experience covering consumer technology. He is currently employed at Digit in the capacity of a Managing Editor. Mithun has a background in Computer Engineering and was an active member of the IEEE during his college days. He has a penchant for digging deep into unravelling what makes a device tick. If there's a transistor in it, Mithun's probably going to rip it apart till he finds it. At Digit, he covers processors, graphics cards, storage media, displays and networking devices aside from anything developer related. As an avid PC gamer, he prefers RTS and FPS titles, and can be quite competitive in a race to the finish line. He only gets consoles for the exclusives. He can be seen playing Valorant, World of Tanks, HITMAN and the occasional Age of Empires or being the voice behind hundreds of Digit videos. View Full Profile
