Intel Corporation is planning to cut more than 20% of its global workforce, according to Bloomberg News. This big move is part of a wider restructuring plan under the company’s new CEO, Lip-Bu Tan, who aims to simplify Intel’s operations and bring back a strong focus on engineering.
Why Is Intel Cutting Jobs?
Intel has been facing falling revenues and strong competition from other chipmakers like AMD and Nvidia. To reduce costs and become more efficient, the company is laying off thousands of workers across its international branches.
Last year, Intel cut 15,000 jobs, and its workforce dropped from 124,800 to 108,900 by the end of 2024.
Focus on Core Chip Business
Under Lip-Bu Tan’s leadership, Intel is now focusing on core business areas like advanced chip design and manufacturing. The company is reducing investments in projects that don’t bring enough profit. Tan said that although rebuilding will take time, he is confident in Intel’s long-term recovery.
CEO Tan’s Vision for Intel’s Future
At his first public event as CEO during the Intel Vision conference, Tan openly addressed the challenges Intel is facing. He said:
“It won’t happen overnight, but I know we can get there.”
Tan’s goal is to reduce unnecessary layers of management and bring back a culture focused on innovation and engineering.
Struggles in a Changing Market
Intel has fallen behind in the AI race, missing out on big opportunities while Nvidia has become the top chip company globally. Delays in reacting to market changes and new technologies have made Intel’s position even more difficult.
Expansion Projects on Hold
Intel has paused several expansion projects, including its well-known Ohio chip facility, which was once promoted as the world’s largest chip-making site. The company is also expected to release its first-quarter earnings report this Thursday, which may reveal more about its future plans and progress.
