Intel is looking to reduce headcount by 20 per cent, as per a Bloomberg report. This trimming does not really come as a big surprise because Lip-Bu Tan, CEO, Intel, has been working on a reorganisation plan to speed up decision-making, increase focus on artificial intelligence and improve efficiency. His objective is to make Intel an engineering-focussed firm.
Ever since he took on the CEO role in March 2025, Tan has been trying to simplify processes and encourage direct reporting to him. Some key teams including the ones working on artificial intelligence (AI), PC chips and the data centre are already reporting to him directly.
As part of the reorganisation exercise, Intel recently elevated Sachin Katti to chief technology officer (CTO) and head of AI. The objective of the appointment is to give the required push to AI within the organisation so that it grows beyond being just a subunit of the data centre business of Intel.
This is the first round of job cuts after Tan took the reins.
In February 2025, it was reported that Intel was set to eliminate 58 more jobs at its Folsom, California campus by the end of March. This move was part of its broader effort to reduce costs by $10 billion by 2025. This was in addition to the 1,000+ positions that were already cut at the site since early 2023.
Since late 2022, Intel has trimmed its global workforce by 23,000 employees. In 2024 alone, it cut 16,000 jobs as it restructured operations.
