Intel Cuts Over 20% Jobs – Industry Faces Big Shift

In the latest turn of events, Intel plans to eliminate 15,000 jobs within the company and reduce its leadership team. At a conference, the newly appointed CEO, Lip-Bu Tan, informed employees at Town Hall that the company needs to make some “tough decisions.” 

According to a statement given to Reuters, Tan was evaluating major shifts in its chip production approach and artificial intelligence initiatives.

Moreover, the new trajectory included an overhaul of Intel’s AI strategy and workforce reductions, targeting what Tan referred to as an inefficient and sluggish middle management structure.

In 2024, Intel implemented job cuts as part of a $10 billion cost-saving initiative for the year, prompted by rising expenses, narrowing profit margins in its primary PC and data centre divisions, and a costly shift toward AI chips. In this field, the company has fallen behind its rivals, such as Nvidia.

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As of the end of 2024, the Santa Clara, California-based company employed 108,900 people, according to a recent filing.

Intel is set to announce its first-quarter earnings on Thursday.