Intel Corp. is preparing to eliminate roughly 21,000 positions in the coming weeks, trimming nearly one‑fifth of its global workforce in what would be the company’s largest layoff in more than a decade. The move, first reported by Bloomberg, comes less than a year after Intel shed 15,000 jobs in an earlier cost‑cutting round.
Workforce Impact
Intel told regulators its head‑count stood at 124,800 at the end of 2023. If the new cuts proceed as outlined, staffing would fall to about 88,800—an overall reduction of 28 percent in under two years. Most of the layoffs are expected to hit corporate and middle‑management roles, though final targets have not been disclosed.
Strategic Rationale
New chief executive Lip‑Bu Tan, installed in March, is pushing to “flatten” the organization and restore an engineering‑centric culture after a string of manufacturing stumbles. Executives say the cuts dovetail with a multi‑year effort to slice $10 billion in costs while freeing cash for advanced‑node R&D and U.S. fabrication projects subsidized by the CHIPS Act.
External Pressures
The White House is weighing additional tariffs on imported electronics, a move that could raise material costs for U.S. chipmakers. Intel and peers temporarily escaped a 145 percent levy on certain chips last year, but renewed trade tensions have added urgency to its restructuring plan.
Financial Context
Intel’s earlier job cuts and dividend suspension failed to halt sliding margins; revenue growth from AI accelerators has not met internal forecasts. The stock has fallen roughly 40 percent from year‑ago levels despite a brief rally on rumors of deeper cost reductions.
Next Steps
Management is expected to detail the downsizing when Intel reports first‑quarter results after today’s market close. Analysts will look for clarity on which product lines—PC, data‑center, or foundry services—take the heaviest hit as the company races to regain technological parity with AMD, Nvidia and TSMC.