Intel is preparing to announce plans to lay off more than 20% of its workforce, according to a report by Bloomberg News, citing a source familiar with the situation. The move is part of a broader effort to streamline operations, eliminate inefficiencies, and revive the company's engineering focus.

Layoffs Driven by Strategic Shift Under New Leadership

The layoffs come under the leadership of new CEO Lip-Bu Tan, who took over the helm of the Silicon Valley chip giant just last month. Intel has yet to officially comment on the report, and Reuters' request for a statement has so far gone unanswered.

The job cuts are part of a larger push to reshape Intel's culture, placing a stronger emphasis on engineering excellence and faster decision-making. Tan reportedly aims to tackle the company's long-standing issues with bureaucratic bottlenecks and slow-moving middle management.

Background: A Company in Transition

Last month, Reuters reported that Tan was already considering sweeping changes to Intel's chip manufacturing approaches and artificial intelligence (AI) strategies. During a town hall meeting, Tan warned employees that Intel would need to make "tough decisions" to regain its competitiveness.

More recently, Tan has moved to flatten Intel's leadership structure, having key chip teams report directly to him, a move intended to speed up innovation and responsiveness.

Second Wave of Layoffs Within a Year

The upcoming job cuts follow Intel's previous workforce reduction in August 2024, when the company announced plans to eliminate around 15% of its positions—roughly 15,000 jobs—as part of a $10 billion cost-saving initiative.

The decision to trim the workforce again is linked to:

Intel reported having 108,900 employees globally as of the end of 2024.

Financial Outlook

Intel is scheduled to announce its first-quarter financial results on Thursday, where further details about the restructuring and cost-saving measures may be shared.