New CEO Lip-Bu Tan aims to streamline leadership and restore engineering focus amid ongoing challenges
Intel (INTC) is preparing to cut more than 20% of its workforce as part of a sweeping restructuring initiative under new CEO Lip-Bu Tan, Bloomberg reported Tuesday, citing a source familiar with the plans.
The layoffs — expected to be announced this week — are aimed at eliminating bureaucratic inefficiencies and refocusing the company’s culture around engineering and innovation. This marks the first major move by Tan since taking over the reins at the struggling semiconductor giant just last month.
The reported cuts are expected to impact thousands of employees and are part of a broader effort to flatten Intel’s corporate structure. According to earlier reports from Reuters, Tan has already begun reshaping the organization by having key chip units report directly to him, bypassing layers of middle management.
Intel has been grappling with multiple challenges in recent years, including delays in advanced chip manufacturing, intensified competition from rivals like AMD and Nvidia, and a broader industry slowdown. Analysts say the company’s bureaucratic culture has slowed decision-making and innovation — something Tan appears determined to change.
While Intel declined to comment on the reported layoffs, the move signals Tan’s urgency in reviving the company’s reputation as a leader in cutting-edge semiconductor technology.
The decision also reflects broader trends in the tech industry, where major firms are shedding jobs and reshaping operations amid economic uncertainty and shifting market dynamics. As Intel prepares for this deep cut, investors and industry watchers will be closely monitoring Tan’s next steps to reinvigorate growth and regain Intel’s competitive edge.
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