According to LatestLY, Intel Corporation plans to cut more than 20% of its workforce in April 2025. The company’s new boss (CEO) Lip-Bu Tan is making these changes to help Intel compete better in the computer chip market.
Intel’s Job Cut History
This is not the first time Intel has reduced its workforce. In August 2024, the company already cut about 15,000 jobs, which was 15% of all workers.
| Time | Number of Jobs Cut | Percentage | Purpose |
|---|---|---|---|
| August 2024 | 15,000 | 15% | Save $10 billion by 2025 |
| April 2025 (planned) | More than 20% | Over 20% | Streamline operations |
Why Is Intel Making These Changes?
Intel has faced three years of falling sales. The company is struggling to keep up with rivals like Nvidia, especially in making chips for artificial intelligence (AI) – computer systems that can learn and think similar to humans.
The company is restructuring, which means changing how it’s organized. This includes cutting bureaucracy (too many managers and slow decision-making) and focusing more on engineering (the people who build the products).
New Leadership Structure
CEO Lip-Bu Tan, who took over in March 2025, is simplifying management. He wants fewer layers of bosses and more focus on making good products.
- Direct reporting: Technical leaders Rob Bruckner, Mike Hurley, and Lisa Pearce now report directly to the CEO instead of through middle managers
- New AI leader: Sachin Katti became the Chief Technology and AI Officer, bringing all AI work under one person
- Engineering focus: The changes aim to create a culture where engineers and their ideas are more important
Intel’s Workforce Changes
By the end of 2024, Intel’s workforce had already shrunk to 108,900 employees, down from 116,500 in June 2024. The new cuts will reduce this number even further.
These changes show how seriously Intel is taking its problems. The company is betting that becoming smaller and more focused will help it survive and grow again in the tough computer chip business.
