Tech
Intel to Slash Over 20% of Workforce in Major Restructuring – Latest Updates
Intel Corporation is poised to unveil a sweeping restructuring plan this week, with sources signaling cuts exceeding 20% of its workforce—potentially impacting over 22,000 jobs. The chipmaker’s move comes amid slumping demand and fierce competition in the semiconductor race.
Details of Intel’s Workforce Reduction
- Scale: Thousands of employees across sales, marketing, and select R&D units face layoffs.
- Goal: Slash costs and streamline operations to counter financial strain.
- Timeline: New CEO Lip-Bu Tan is expected to confirm details soon, per industry insiders.
Why Is Intel Downsizing?
Intel’s grappling with a perfect storm:
✔ Demand Dip: PC and server chip sales are tanking.
✔ Rivals Surge: AMD, NVIDIA, and ARM-based chipmakers are eating Intel’s lunch.
✔ Foundry Flop: Efforts to rival TSMC’s manufacturing dominance have stalled.
✔ Investor Heat: Pressure’s on to boost margins after a $19 billion loss in 2024.
Impact on Employees and Strategy
- Global Reach: U.S. hubs (Oregon, California) and overseas offices could see cuts.
- Job Shifts: Some roles may move to cheaper regions to save costs.
- Pivot Plan: Intel’s doubling down on AI chips and its foundry business to claw back market share.
Market Reaction & Investor Sentiment
Intel’s stock (INTC) sits at $20.424, down 60% from its 2024 peak of $50.92, trailing AMD ($148.76) and NVIDIA ($943.75). Posts on X buzz with 20% layoff talk, but analysts warn of short-term stock wobbles until Tan’s plan drops. Long-term, a leaner Intel could spark hope if AI bets pay off. Investors are eyeing Tan’s next move after Pat Gelsinger’s exit in December.
Broader Tech Layoff Wave
Intel’s not alone—2024 saw 149,000 tech jobs axed:
- Big Tech: Google (12,000), Amazon (18,000), Microsoft (14,000) slashed headcounts.
- Chip Rivals: Qualcomm cut 1,500; Cisco shed 6,000.
- Startups: Funding droughts forced smaller firms to trim.
What’s Next for Intel?
- 🔹 AI Push: Ramping up data center and AI chip development.
- 🔹 Foundry Fight: Expanding Intel Foundry to challenge TSMC.
- 🔹 Cost Cuts: Targeting $10 billion in savings by 2025, including non-core project culls.
Conclusion: Intel at a Crossroads
These layoffs signal a make-or-break moment for Intel as it battles to reclaim its edge. Employees and investors are on edge for Tan’s official word this week. Stay glued for updates on Intel’s high-stakes overhaul.
