Intel cuts another 20,000 jobs and that's already…

Intel has decided to make a significant shift in its business strategy, announcing plans to eliminate more than 20% of its workforce, which represents over 20,000 positions, as part of a restructuring plan led by the new CEO, Lip-Bu Tan.

This initiative aims to reduce costs and simplify bureaucracy in the company, which has faced prolonged challenges in its business despite being a giant in the semiconductor industry.

The restructuring focuses on reestablishing an engineering-driven culture, following criticism of its current organizational structure, which is considered excessively complex.

Intel restructures and its new CEO plans to cut more than 20,000 jobs

Since his appointment last month, Tan has expressed the need to eliminate redundant layers of management and refocus Intel back towards a product-oriented approach.

This move follows a previous reduction of around 15,000 positions in August 2024, which mainly affected non-technical roles such as administrative and sales staff.

Although it is expected that manufacturing roles and key engineering teams will be preserved in this round of layoffs, it is still unclear which positions will be affected.

According to reports, Intel had 108,900 employees at the end of December 2024, and the elimination of 20,000 positions would exceed even the number of mid-level management positions in the company. This raises questions about whether the number of engineers or projects within the company will be reduced.

Before Intel announces its quarterly results this Thursday, it is in a quiet period and will not offer public comments on the restructuring. This decision has also sparked rumors about whether there will be an incentive for voluntary employee departures through severance packages or early retirements, although there is no confirmation on this matter.