Intel, the chip giant, is getting ready for a major downsizing to stay competitive in the semiconductor industry. This plan aims to reduce bureaucracy and revive the engineering culture within the company.
Intel’s Restructuring Plan with New CEO Lip-Bu Tan
According to a Bloomberg report, Intel is about to announce a reduction in its workforce of more than 20%. This dramatic cut, which could be revealed by the end of this week, is part of a broader restructuring led by the new CEO, Lip-Bu Tan, who took over in March 2025. The goal of the plan is to cut internal red tape and rebuild a culture focused on engineering after years of stagnation and loss of competitiveness.
After three consecutive years of falling sales and losses, Intel needs to catch up with competitors like Nvidia, which has taken the lead in producing chips for artificial intelligence. Lip-Bu Tan, known for his leadership at Cadence Design Systems, seems determined to make a bold change. Bloomberg sources say the plan includes simplifying the management structure and cutting back on activities that no longer align with the company’s mission.
Last August, Intel began a major round of layoffs, cutting 15,000 jobs, bringing the workforce down to 108,900 by the end of 2024, compared to 124,800 in 2023. With this next round of cuts, it would mark one of the most significant restructuring efforts in Intel’s history.
Cuts and Disinvestments
In addition to the job cuts, the new CEO has already started selling off areas considered non-strategic. Just last week, Intel announced the sale of 51% of its programmable chip division, Altera, to the Silver Lake fund.
