Intel's Ai Comeback Bid Begins With Massive Layoffs, Strategic Shift

Intel Corporation is preparing to cut more than 21,000 jobs this week-around 20 of its current workforce-as newly appointed CEO Lip-Bu Tan begins implementing a sweeping restructuring plan, according to a Bloomberg report.

The cuts come less than a year after Intel laid off 15,000 employees in a previous cost-saving round. As of late 2024, Intel's workforce stood at 108,900, down from 124,800 in 2023. This latest move marks the first major shakeup under Tan, who took over leadership last month following the departure of Pat Gelsinger.

Tan, former CEO of Cadence Design Systems, is known for bold strategic overhauls and has been vocal about Intel's need for a reset.

Facing mounting pressure from competitors-particularly Nvidia, which has surged ahead in the AI chip market-Intel is aiming to reposition itself after years of declining market relevance.

Just last week, Intel sold a 51 stake in Altera, its programmable chip division, to private equity firm Silver Lake, signalling a shift in focus under Tan's leadership.