Chipmaker, Intel Corp. is set to cut more than 20% of its staff this week, representing over 21,000 employees this week, according to a report by Bloomberg citing a person with knowledge of the matter.
This comes less than a year after Intel laid off 15,000 staff in a previous cost-cutting effort.
As of the end of 2024, Intel had 108,900 employees, already down sharply from 124,800 a year earlier.
The layoffs would be the first major restructuring under new Chief Executive Officer Lip-Bu Tan, who took the helm last month.
Tan, a former Cadence Design Systems boss, has made it clear that Intel needs a fresh start.
After years of lagging behind rivals like Nvidia in the AI chip race, the once-dominant tech giant is looking to reclaim its edge.
Just last week, Intel sold a 51% stake in its programmable chip unit, Altera, to private equity firm Silver Lake.
The 65-year-old Tan took the helm following the exit of Pat Gelsinger, who had struggled to deliver on his ambitious turnaround plan.
In his first public appearance as CEO, Tan acknowledged the challenges ahead and cautioned that the turnaround won’t be quick or easy. Still, the cuts and strategy shifts signal that he’s willing to make bold moves to steer Intel back into relevance.
The planned layoffs by Intel will add to the growing list of tech companies that have disengaged workers this year as the players adjust to economic realities.