Intel is reportedly planning to reduce its workforce by more than 20%.
According to Bloomberg’s report, Intel’s new CEO Lip-Bu Tan's strategy is to streamline management and revitalise the company's engineering-driven culture.
The layoffs are part of a broader strategy to refocus on company positioning, according to the report.
To note, the company previously announced a layoff of around 15,000 employees in August last year.
Tan plans an overhaul of the company's manufacturing and AI operations after the embattled firm lost its lead in chipmaking to Taiwan's TSMC to competitors such as chipmaker Nvidia, resulting in three consecutive years of declining sales.
At the Intel Vision conference last month, Tan emphasised the requirement to change lost engineering talent, enhance the balance sheet and align manufacturing processes with customer needs.
Intel was also expected to benefit significantly from the 2022 Chips and Science Act, but the programme's status is uncertain under US President Donald Trump.
"Intel poised to slash more than 20% of the workforce – report " was created and published by Verdict, a GlobalData-owned brand.
The company is expected to release its Q1 2025 earnings on Thursday, where more clarity on its restructuring strategy and financial outlook is expected.
Intel’s former CEO Pat Gelsinger's initiatives included expanding the factory network and transforming Intel into a made-to-order chip manufacturer.
While Intel has delayed much of this expansion, including an Ohio facility initially rumoured to be the world's largest chip production hub.
