The layoffs are part of a broader initiative to streamline Intel’s operations, reduce administrative inefficiencies, and prioritize an engineering-driven culture. This follows a previous round of cuts in August 2024, when Intel reduced approximately 15,000 positions, about 15% of its staff, as part of a $10 billion cost-saving plan. By the end of 2024, Intel’s workforce totaled nearly 109,000 employees.
At the recent Vision 2025 event, Tan addressed the company’s challenges: “It has been a tough period for quite a long time for Intel. We fell behind on innovation. As a result, we have been too slow to adapt and to meet your needs.” He emphasized his commitment to revitalizing the company by focusing on innovation and operational efficiency.
Tan has already started reorganizing Intel’s structure, with key chip divisions now reporting directly to him to enhance decision-making. In internal discussions, he has described the need for “tough decisions” to address inefficiencies, particularly in middle management, while committing to invest in top engineering talent. “Under my leadership, Intel will be an engineering-focused company,” Tan stated.
The CEO is also positioning Intel’s foundry business as a cornerstone of its future strategy, dispelling earlier speculation about its potential sale. Additionally, Tan confirmed that Intel’s advanced 18A process technology is on schedule for mass production later this year, signaling progress in its technological roadmap.
Intel is preparing to release its first-quarter earnings on Thursday, which may provide further insight into its financial and strategic direction. The company has not yet issued an official statement regarding the reported job cuts.
