The move, expected to be confirmed this week, marks the most significant shake-up yet under the leadership of newly appointed CEO Lip-Bu Tan.
The job reductions form part of a wider effort to simplify Intel’s internal structure, strip out bureaucracy, and restore an engineering-first culture at the heart of the business. The company has yet to comment officially on the reports.
This is the second major wave of redundancies in less than a year. In August 2024, Intel announced plans to eliminate approximately 15,000 roles—around 15% of its headcount—as part of a $10 billion cost-cutting programme. At the close of 2024, the company employed nearly 109,000 people.
Tan, who stepped into the CEO role last month, has made clear his intention to fundamentally reshape the chipmaker after years of missed targets and lagging innovation.
He previously resigned from Intel’s board in protest at its AI strategy, only to return to take the reins as the company’s fortunes continued to falter.
Speaking at the company’s recent Vision 2025 event, Tan acknowledged the scale of the challenge ahead: “It has been a tough period for quite a long time for Intel. We fell behind on innovation. As a result, we have been too slow to adapt and to meet your needs.”
Since assuming leadership, Tan has begun flattening Intel’s organisational structure, with several major chip divisions now reporting directly to him.
In internal meetings, he’s reportedly told employees that “tough decisions” are unavoidable, pointing to inefficiencies in Intel’s middle management as a key area for reform.
Despite the looming layoffs, Tan has pledged to invest in top engineering talent and rebuild a culture that fosters innovation. “Under my leadership, Intel will be an engineering-focused company,” he stated.
As part of his turnaround plan, Tan is placing Intel’s foundry business at the centre of its long-term strategy, countering previous speculation that it might be divested. He also reaffirmed that Intel’s next-generation 18A process technology remains on track for mass production later this year.
Intel is due to report its Q1 earnings on Thursday.
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