The HR Digest was the first to cover that Intel layoffs will be back in the spotlight with the arrival of new CEO Lip Bu Tan. It seems Tan is wasting no time in making sweeping changes at the semiconductor giant. Chief among these changes are job cuts at Intel in 2025 that could redefine the giant’s workforce. With a strategy rooted in revitalizing manufacturing, accelerating AI innovation and staging a fierce fightback against NVIDIA. Lip Bu Tan’s vision comes with a grim reminder. Intel layoffs are a much-needed sacrifice for survival in 2025.
The upcoming layoffs in 2025 now build on last year’s workforce reduction of 15,000 jobs. This move shrank the giant’s headcount to around 109,000 along with employee morale. Lip Bu Tan, returning after a brief exit from Intel’s board in August 2024, now has his sights set on trimming the fluff. This so-called fluff is a ‘bloated middle management layer’. A move that sources say frustrated him during his earlier tenure. At a recent town hall, Lip-Bu Tan hinted at the scale of layoffs at Intel in 2025. He called for “tough decisions” to restore agility within the company. The exact figures for these Intel job cuts remain under wraps for now. Although the writing on the wall couldn’t be clearer. More reductions are coming to Intel.
Layoffs at Intel will tackle a massive financial crisis
Why the urgency with Intel layoffs in 2025? The semiconductor giant made a loss of $19 billion in 2024. This financial tailspin, its first since 1986, demands immediate and brutal action. Lip Bu Tan’s plan now depends on two vastly different fronts: reclaiming dominance in semiconductor manufacturing and catching up in the AI race against the likes of Meta and Nvidia.
“We’ve known change was coming, but Lip-Bu Tan’s focus on cutting middle management to fuel AI and manufacturing hits hard,” said an Intel veteran to The HR Digest. “The layoffs are brutal, but he’s betting on efficiency to save the company. It’s sink or swim now.” (Image Credit: Intel)
Intel’s foundry ambitions, launched under former CEO Pat Gelsinger, aimed to produce chips for clients like Nvidia but failed amid delays and quality issues. Tan is doubling down, pushing the “18A” process tied to Intel’s next-gen AI chip, Panther Lake. Early tests with Nvidia, Broadcom, and AMD show promise, but success here is critical to luring big names and reversing Intel’s slide against TSMC.
New CEO Lip Bu Tan’s fightback strategy at Intel unfolds
On the AI front, Tan is tackling Intel’s lag. Rivals like Nvidia churn out AI chips yearly, while Intel’s pace has sizzled. His goal? Streamline operations with more layoffs at Intel, boost yields, and target a competitive AI chip architecture by 2027. It’s a tall order, and the Intel layoffs are the cornerstone of this strategy. A bold move to fund this fightback by slashing costs and bureaucracy. Investors seem to agree with the plan. Intel’s stock surged over 8% on Nasdaq after news of Lip Bu Tan’s layoffs broke.
“Lip-Bu will be spending a lot of time listening to customers, partners and employees as he comes on board and works closely with our leadership team to position the business for future success,” an Intel spokesman said in a statement.
The human cost of Intel job cuts in 2025
The human toll of these Intel job cuts can’t be ignored. Layoffs at Intel aren’t new, but this round feels different. It’s more surgical and existential. Tan’s disdain for the company’s drifted culture, once epitomized by Andy Grove’s “only the paranoid survive,” drives his focus on efficiency. For a workforce already reeling from last year’s Intel job losses, the message is clear: adapt or exit.
It cannot be understated that Intel layoffs in 2025 will be a defining gamble. Lip Bu Tan isn’t just pruning the ranks. He’s replanting Intel’s roots in semiconductors and AI. The job cuts at Intel in 2025 may spark short-term pain; however, they’re aimed at long-term gain. Whether this strategy resurrects Intel’s glory days depends on execution. For now, the semiconductor industry holds its breath, and Intel’s employees brace for the fallout.
What’s your take on the upcoming Intel layoffs? How should companies balance workforce reductions with innovation? Share your thoughts in the comments below. Subscribe to The HR Digest for the latest HR news and layoff updates in 2025.
