Intel To Cut 20% Workforce Amid Major Restructuring Efforts: Report

Tech behemoth Intel Corporation is planning to cut 20 per cent of its workforce. The Santa Clara-based company is expected to make an announcement sometime this week, according to a report in Bloomberg News.

Once one of the biggest US chip manufacturers, Intel has decided to slash a part of its workforce for smoother operations and to eliminate bureaucracy. The move comes after Lip-Bu Tan took over as the CEO in March. 

It's the first major restructuring under Mr Tan, who wants to catch up with rivals, especially after falling behind Nvidia in making AI chips. The company plans to focus more on engineering, the report added.

Intel has seen its sales drop three years in a row and has trailed Nvidia when it comes to advancements in technology. Mr Tan plans to sell off parts of Intel's assets that don't align with the company's central mission. He is trying to focus on creating more compelling and better products.

Former CEO Pat Gelsinger admitted that the company lost its drive to compete and was too slow to keep up with market changes. He added that he tried to fix things but didn't get the chance.

Last week, Intel announced it will sell 51 per cent of its stake in its programmable chips unit, Altera, to Silver Lake Management. 

During the Intel Vision conference in March, Mr Tan said, "Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers".

Mr Tan added, "It [turnaround] won't happen overnight. But I know we can get there."

Apart from the aforementioned measures, the company has put several of its expansion plans, including a major factory in Ohio that was supposed to be the world's biggest chip-making site, on hold.

Last August, the company cut about 15,000 jobs. Intel had 1,08,900 employees at the end of 2024, down from 1,24,800 the previous year, according to reports.