Intel Reportedly Planning to Lay Off Over 21,000 Employees This Week
In what could mark one of the most dramatic corporate restructurings in recent tech history, Intel is reportedly preparing to announce the layoff of more than 21,000 employees, or approximately 20% of its global workforce, according to a new report by Bloomberg. This sweeping cost-cutting measure would be the first major move under newly appointed CEO Lip-Bu Tan, reflecting what some analysts are describing as a sharpened sense of urgency and fiscal discipline at the iconic chipmaker.
As of the end of 2024, Intel employed around 108,900 people globally, per data from Trading Economics. If accurate, the reported job cuts would affect over 21,000 employees across departments, geographies, and business units. The announcement is expected to coincide with Intel’s Q1 2025 earnings release, which will be the first under Tan’s leadership.
This report is not the first indication of workforce reductions at Intel. In July 2024, Bloomberg had already surfaced information about a planned cut of 10,000 jobs, but no large-scale reduction followed. The current revelation suggests a much more aggressive approach, potentially tied to the $10 billion cost-cutting target laid out during former CEO Pat Gelsinger’s tenure. However, it remains unclear whether this move is a continuation of that plan or a new strategy entirely under Tan’s leadership.
Tech analyst C.J. Muse of Cantor Fitzgerald, who earlier this week cited signs of “aggressive cost-cutting” at Intel, views this development as a bullish indicator. The timing is notable, as it comes just days before Intel’s anticipated Foundry Day event on April 29, where additional announcements, including a possible joint venture, are expected to bolster investor confidence.
Investor reaction to the news has been tentatively positive. Intel’s stock closed up 4% during the regular trading session and gained another 2% in after-hours trading, reflecting cautious optimism from Wall Street. Despite remaining mostly flat year-to-date, the stock has recovered some of the losses sustained in March and early April.
Should the layoffs be confirmed, the impact on Intel’s organizational structure, morale, and innovation output could be significant. At the same time, it may mark a critical turning point in the company’s path to regaining competitiveness in a market increasingly dominated by TSMC, AMD, and emerging AI infrastructure demands.
What do you think of Intel’s reported move to cut 20% of its workforce? A needed reset or a risky shift under new leadership? Let us know your take.
