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April 23, 2025 | 06:07 pm
TEMPO.CO, Jakarta - Intel is likely to announce this week its plan to cut more than 20 percent of its workforce. Intel's headcount had previously been reduced to around 120,000 after the 2022 cuts due to the COVID-19 pandemic, and again in 2024, leaving 108,000 employed.
The latest cuts are aimed at removing bureaucracy at the giant chipmaker based in Santa Clara, California, United States. The move is part of an effort to “streamline management and rebuild an engineering-driven culture,” a person familiar with the plan told Bloomberg in its article published Wednesday, April 23, 2025.
If proven correct, this cut will be Intel's first major restructuring move under CEO Lip-Bu Tan, who has only been in office for a month. Until the information was quoted, there was no immediate response from Intel.
Tan is currently trying to revive Intel from a three-year sales slump. Once a dominating force in the PC and data center chip market, Intel has now lost ground to Nvidia Corp., due to the inaction regarding the developments of artificial intelligence (AI) technology.
Tan recently restructured the leadership ranks at the company. He promoted networking chip chief Sachin Katti to chief technology officer and artificial intelligence chief. Along with that, Intel's data center and AI chip group, as well as its personal-computer chip group, will report directly to Tan.
“I want to roll up my sleeves with the engineering and product teams so I can learn what's needed to strengthen our solutions,” he was quoted as saying by Channel News Asia.
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