Come July and Intel will begin cutting jobs with an aim to restructure and ensure streamlined operations at its factories. While this is the first major round of layoffs under Lip-Bu Tan, the new CEO of the company, Intel has cut jobs earlier too.
In August 2024, it was reported that the chip manufacturer was trying hard to save costs even if it meant reducing its workforce by at least 15 per cent. It planned to let go over 15,000 of its team members, to gain from cost savings of about $10 billion for 2025. At the time, the company was reportedly gearing to complete that target of 15,000 by end of the year. Under Pat Gelsinger, the then CEO, the impacted employees had been notified by October.
Ever since Lip-Bu Tan took on the CEO role in March 2025, he 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. The company’s strategic transformation is expected to enable it to handle the competition in the global chip industry.
It is reported that individual departments have been asked to come up with ways to reduce headcount even while fulfilling the financial goals set by the senior leaders.
With these cuts, Intel hopes to become less complex as an organisation and place more power in the hands of the engineering teams. Amidst falling demand for personal computers and increasing competition, these measures will result in higher client satisfication and organisational agility.
