NAIROBI, Kenya — Intel is gearing up for another round of mass layoffs — this time targeting more than 20pc of its workforce — as part of a sweeping cost-cutting strategy under its new CEO, Lip-Bu Tan.
According to a Bloomberg report, the decision is aimed at streamlining bloated operations and reigniting its long-dormant engineering culture.
With Tan at the helm and a $10 billion cost-reduction plan in motion, this is Intel’s boldest — and possibly riskiest — move yet to catch up in the high-stakes race for AI supremacy.
Intel reportedly plans to lay off over 21,000 employees tcrn.ch/42qOzIf
Cutting Deep to Rebuild Culture
CEO Lip-Bu Tan, who only took charge last month, made the announcement during a candid town hall with employees. The message? Tough decisions are coming, and everyone should brace for impact.
Intel’s CEO is rethinking everything from chip manufacturing to AI architecture — areas where Intel has notably fallen behind rivals like Nvidia.
The layoffs are more than just a personnel shake-up — they’re part of a broader financial strategy.
With high operating costs, shrinking margins in its core PC and data center businesses, and an ambitious pivot toward AI chips, Intel needs to free up cash fast.
Intel already cut 15,000 jobs last August. Now, with over 20pc of its 108,900 employees potentially facing pink slips, the chipmaker is hoping leaner operations can fund innovation and restore investor confidence ahead of its upcoming earnings report on Thursday.
AI is the golden goose, and Intel knows it. But breaking into a market dominated by Nvidia won’t be easy.
Lip-Bu Tan’s First Big Test
This week’s announcement will be the first real test of Tan’s leadership. Can he pull Intel out of its innovation rut without gutting morale? Will Wall Street buy into the cost-cutting as a growth strategy — or see it as a sign of desperation?
All eyes will be on Intel’s Q1 results, due out Thursday. But even before the numbers drop, one thing’s clear: under Tan, the status quo at Intel is getting a factory reset.
