SUMMARY
- Intel to lay off approximately 21,000 employees as part of a major organizational overhaul under new leadership.
- CEO Lip-Bu Tan’s strategy aims to streamline operations and restore Intel’s dominance after years of decline.
- The move reflects broader tech industry turbulence in 2025 amid global tariff impacts and post-pandemic realignments.
Intel’s Bold Reset: 20% Workforce Reduction to Fuel Engineering-Driven Future
April 27, 2025 | Silicon Valley — In a sweeping move to reengineer its future, Intel Corporation is set to lay off about 20% of its global workforce — approximately 21,000 employees — this year, sources confirmed ahead of the company’s Q1 earnings report. The mass layoffs form the cornerstone of new CEO Lip-Bu Tan’s blueprint to reboot Intel into a leaner, engineering-led powerhouse.
The staff reduction, first reported by Bloomberg, highlights a pivotal moment for Intel, which has been struggling to regain its leadership position in a market increasingly dominated by rivals like Nvidia, AMD, and Apple’s in-house silicon designs.
“We must move fast, stay focused, and rebuild an engineering-first culture,” Tan told employees in an internal memo last month.
Intel is laying off 22,000 people.
— INDmoney (@INDmoneyApp) April 24, 2025
This is nearly 20% of its global workforce.
It’s not just a cost-cutting move. It’s a survival play.
Here’s what’s pushing this American chip giant to its biggest shake-up in years 👇🧵 pic.twitter.com/yF1rScEhca
The Numbers Behind the Decision: From 108,900 to 87,000 Employees
- Intel reported 108,900 employees at the end of 2024.
- A 20% cut would shrink the workforce to around 87,000 employees — the lowest in nearly a decade.
- The layoffs are expected to target redundant management layers and non-core business units, though precise details are expected post-Q1 earnings call.
While Intel hasn’t officially disclosed which divisions will be most affected, analysts anticipate cuts across administrative, marketing, and legacy manufacturing operations, sparing core R&D and AI chip design teams.
Leadership Shakeup: Tan’s Vision for “The New Intel”
Lip-Bu Tan, who took charge in March 2025, following the exit of former CEO Pat Gelsinger, has made it clear that Intel must return to its engineering roots if it is to survive and thrive.
In his address to employees, Tan emphasized:
- Doubling down on AI chip innovation.
- Streamlining to “cut out unnecessary layers” slowing product development.
- Holding teams accountable for customer commitments and market delivery.
Notably absent from Tan’s remarks were assurances about employee job security, signaling a hard-nosed approach to turnaround leadership.
“In areas where we lag behind competition, we will take calculated risks. In areas where momentum exists, we will double down,” Tan said.
A Pattern of Downsizing: Intel’s Third Major Cut Since 2023
- In 2023, Intel cut ~15,000 jobs, citing supply chain disruptions and declining PC sales.
- In 2024, under Gelsinger, Intel again slashed another 15,000 jobs, attempting to control costs amid falling chip demand.
- Now in 2025, the 21,000 additional layoffs mark Intel’s largest workforce reduction yet.
This relentless downsizing spree indicates persistent financial and strategic challenges, despite past efforts to pivot toward foundry services and AI chip markets.
Global Headwinds: Tariffs, Supply Chain Stress, and Geopolitics
While Intel has major manufacturing bases in Oregon and Arizona, retaliatory tariffs from China — announced earlier this month — have rattled the broader tech sector. Although Intel’s domestic production cushions some impact, external manufacturing and global clients remain exposed.
Tech industry-wide layoffs at Google, Microsoft, and federal agencies underscore that 2025 is becoming a disruptive year for employment, with tariff tensions only worsening the situation.
Will Workforce Cuts Help Intel Hit Its Goals?
While Tan’s layoff strategy is designed to boost efficiency and reshape Intel’s identity, serious questions remain:
- Can the company achieve its earlier target of 25–30% operating margins by 2030?
- Will Intel maintain its aggressive push into AI accelerators and foundry services amid shrinking headcounts?
- How much talent loss will the layoffs cost Intel at a time when competitors are fiercely innovating?
For now, Wall Street remains cautious, with Intel shares falling earlier this month after retaliatory tariffs news and ahead of the Q1 earnings report.
Final Word: A Crucial Year for Intel and Its Employees
Intel’s deep workforce cuts signal a no-compromise approach to survival and reinvention in a radically shifting tech landscape. But rebuilding “The New Intel” will demand more than just slashing payrolls — execution, innovation, and customer trust will ultimately decide whether this once-unstoppable giant can reclaim its place at the forefront of global technology.
