Intel is making significant changes under its new CEO, Lip-Bu Tan, including laying off 20% of its staff this week. According to a Bloomberg report, these layoffs are part of Intel’s effort to “eliminate bureaucracy,” simplify management, and refocus the company on its engineering culture. This is the first major round of job cuts since Tan took over as CEO last month. Although the exact number of employees affected is not clear, the cuts could impact thousands of workers across the globe.
This decision comes shortly after earlier reports hinted at another round of layoffs at Intel. If these cuts go ahead, they could be larger than the 15% workforce reduction that took place last year, which saw around 15,000 employees lose their jobs.
Intel’s New CEO Plans Big Changes for the Company
Lip-Bu Tan, who previously served as CEO of Cadence and as a member of Intel’s board, is focused on making sweeping changes at the company. One of Tan’s main goals is to overhaul Intel’s artificial intelligence (AI) strategy and improve the company’s chip manufacturing operations. Tan believes Intel’s internal structure has become too complex, with too many layers of middle management that slow down decision-making. At a recent company meeting, Tan told employees that there would be “tough decisions” ahead.
A Challenging Decade for Intel
Intel has faced challenges in recent years. Once a leader in the personal computer and data center markets, the company has lost ground to competitors like Nvidia and Arm, particularly in the booming AI chip market. In 2024, Intel reported a loss of $19 billion, marking its first annual loss since 1986. The company has struggled with setbacks under its past three CEOs, which has led to a shift in strategy under Tan’s leadership.
Focus on Engineering and Innovation
Tan’s plan to turn Intel around includes refocusing on its engineering roots. At Intel’s “Vision” event earlier this month, Tan emphasized the need to empower engineers, foster innovation, and rebuild trust with customers. He has also made it clear that attracting and retaining top engineering talent is a priority for the company moving forward.
Tan’s strategy appears to be a more streamlined version of the approach taken by former CEO Pat Gelsinger. While Gelsinger aimed to position Intel as a leading global chip manufacturer for other tech companies, Tan is expected to continue this goal with a leaner workforce and a stronger focus on execution.
The Larger Trend of Layoffs in the Tech Industry
Intel’s layoffs are part of a broader trend in the tech industry, where thousands of workers have lost their jobs in 2023 and 2024. According to Layoffs.fyi, over 23,500 tech workers have been laid off across 93 companies in 2025 alone. Companies like Google and Microsoft are also restructuring. Google recently let go of hundreds of workers in its Platforms and Devices division, while Microsoft is planning more layoffs in May, with a focus on reducing middle management. These changes are part of a wider push towards AI-led restructuring and performance-based job cuts. Other major companies, including Meta, TikTok, Ola Electric, and Siemens, are also trimming staff to improve efficiency and adjust to market pressures.
Conclusion
In conclusion, Intel’s restructuring under Lip-Bu Tan signals a major shift in the company’s direction, as it focuses on simplifying its operations and investing in engineering talent to regain its competitive edge in the tech industry. This move comes amid broader trends of job cuts and organizational changes in the tech sector as companies adapt to new challenges and opportunities in AI and other emerging technologies.
