**Intel Plans Major Layoffs to Restructure and Compete in AI Market**
Intel Corporation is set to announce significant layoffs this week, with reports indicating a reduction of over 20% of its workforce. This move aims to “eliminate bureaucracy” and streamline operations, according to a source cited by Bloomberg. The chipmaker is undergoing a major restructuring under the leadership of new CEO Lip-Bu Tan, who took the helm in March 2025. The layoffs are part of a broader strategy to enhance management efficiency and foster an engineering-driven culture within the company.
The decision to cut jobs comes as Intel seeks to regain its competitive edge, particularly in the artificial intelligence (AI) chip sector, where it has lagged behind rivals like Nvidia. This is not the first instance of job cuts at Intel; in August 2024, the company laid off approximately 15,000 employees, reducing its workforce to around 108,900 by the end of that year, down from 124,800 in 2023.
**Tan’s Vision for Intel’s Future**
Under Tan’s leadership, Intel is focused on revitalizing its operations after three consecutive years of declining sales. He has expressed a commitment to divesting non-core assets and developing more innovative products. “Intel needs to replace the engineering talent it has lost, improve its balance sheet, and better align manufacturing processes with customer needs,” Tan stated during the Intel Vision conference in March.
In line with this vision, Intel recently announced plans to sell a 51% stake in its programmable chips unit, Altera, to Silver Lake Management. This strategic move is expected to help the company refocus on its primary mission and enhance its product offerings.
Intel is scheduled to report its Q1 earnings results on April 24, which will provide further insights into the company’s financial health and the impact of these restructuring efforts.
**FAQ**
**What is the reason behind Intel’s layoffs?**
Intel’s layoffs are part of a restructuring strategy aimed at reducing bureaucracy, streamlining management, and fostering an engineering-driven culture to better compete in the AI market.
