In a significant move that could reshape the future of the tech giant, Intel is reportedly preparing to announce substantial layoffs, affecting over 21,000 employees, which constitutes nearly 20% of its total workforce. This announcement is anticipated to be made this week, as per recent reports.
The impending layoffs come just before Intel’s quarterly earnings call, which will be led by the newly appointed CEO, who took over the reins from the long-serving chief executive last year. This leadership change marks a pivotal moment for the company as it seeks to navigate through challenging times.
According to sources, the CEO’s strategy involves streamlining management processes and fostering a culture that prioritizes engineering excellence. At the end of the previous year, Intel’s workforce stood at approximately 108,900 employees, following a previous round of job cuts that saw 15,000 positions eliminated in August 2024.
Intel has faced considerable challenges in recent years, with its stock price plummeting by around 67% over the last five years. Since stepping into the CEO role in late 2024, the new leader has initiated plans to divest certain divisions of Intel, categorizing them as “non-core” units. Earlier this month, the company made headlines by selling a controlling stake in its semiconductor business to a private equity firm, marking a significant shift in its operational strategy.
As of now, Intel has not provided any official comments regarding the upcoming layoffs, leaving many to speculate about the implications for the company’s future direction and stability.