In one of the most significant workforce overhauls in recent tech history, Intel Corporation has announced plans to reduce more than 20% of its global workforce in 2025. The move, affecting an estimated 21,000 jobs, is part of a sweeping restructuring strategy under the leadership of newly appointed CEO Lip-Bu Tan.
Why the Layoffs Now?
Intel has struggled over the past few years to maintain its dominance in the semiconductor space. Increasing competition from AMD and Nvidia, delays in manufacturing roadmaps, and consistent revenue declines have put the company on the back foot. In the most recent quarter, Intel posted a net loss of $1.61 billion and its stock has dropped more than 40% in the past year.
The layoffs are aimed at eliminating internal inefficiencies, particularly across layers of middle management, and refocusing the company on engineering and innovation—areas it once led globally.
Who Will Be Affected?
While the company hasn’t shared region-specific numbers, reports suggest job cuts will impact operations globally, including facilities in Israel and India. Hundreds of engineers and corporate staff in these regions are expected to be affected. This comes just months after Intel laid off 15% of its workforce in 2024, as part of an earlier $10 billion cost-reduction initiative.
Strategic Shifts Under CEO Lip-Bu Tan
CEO Lip-Bu Tan, who took charge in March 2025, is no stranger to restructuring. Known for his time at Cadence and investments through Walden International, Tan’s leadership signals a sharper focus on:
- Advanced chip design
- Reducing non-core operations
- Spinning off business units that no longer align with long-term strategy
Notably, Intel has sold a 51% stake in its programmable chips division (Altera) to Silver Lake, marking a clear pivot towards operational streamlining.
Market Reaction
Despite the grim news for employees, markets responded positively. Intel’s share price surged over 6% following the restructuring announcement, indicating investor confidence in Tan’s vision to reposition Intel in the global chip race.
The Bigger Picture
Intel’s restructuring reflects broader challenges in the semiconductor industry: tight margins, capital-heavy innovation cycles, and geopolitical shifts in manufacturing hubs. Tan’s plan to return to Intel’s engineering roots while divesting legacy units is being seen as a bold—yet necessary—move.
Disclaimer: This article is for informational purposes only and does not constitute investment or financial advice. Information is based on publicly available sources as of April 2025.
Published by Paisonomics.com – India’s trusted voice in tech markets and corporate strategy.
