The unfortunate setbacks for tech workers continue—Intel is resorting to layoffs in 2025. Despite recent downsizing efforts, Intel is firing employees in large numbers once more, cutting off approximately 20% of its workforce. To focus energies back on an “engineering-driven culture” and streamline its operations, the company will scale down its numbers to advance its goals on efficiency.
Intel’s staff cuts in 2025 are part of new CEO Lip-Bu Tan’s strategy to revive the company and bring it back to its glory days after some of the shine has seemingly rubbed off in recent years. News of Intel’s workforce reduction strategy does not come as a surprise as the change in leadership means a change in the strategic approach in the organization and this often comes with the issue of job cuts.
Will the Intel layoffs set the company on track to achieve its targets this year? (Image: Pexels)
The Intel Layoffs in 2025 Will Affect 20% of the Workforce
The staff cuts were first uncovered by Bloomberg, and the report suggests that Intel will lay off 20% of its workers, which could amount to around 21,000 employees. The aim of the Intel job cuts is to “streamline management and rebuild an engineering-driven culture.” While Intel has not openly announced the layoffs itself or given any indication of which departments will be affected by the cuts, the reports indicated that the plan will be announced later this week.
Intel was reported to have had 108,900 employees at the end of 2024, according to Trading Economic. The company is a massive one and operates within a couple of different industries even now, which is why such a sizable workforce has always been deemed necessary. The scale of the business is one of its biggest weaknesses, with it being a distinct possibility that the company has spread itself out too thin, working on too many services and succeeding in none of them as a result.
Ex-CEO Pat Gelsinger had presented an ambitious plan to cut spending by about $10 billion during his tenure, and it’s currently unclear if the same goals remain under the new CEO or if the decision to cut the workforce is part of a different target under the leader.
Intel’s workforce reduction plans could also be linked to older goals of regenerating 25-30% operating margins by 2030, but this is merely speculative as there is no indication that the new CEO has the same numbers in mind.
This is Not Intel’s First Brush with Job Cuts In Recent Months
Lip-Bu Tan was announced as the new CEO of Intel on March 12, 2025, after Intel’s board requested the resignation of CEO Pat Gelsinger. The company’s struggles have multiplied in recent years, causing it to slip down from its position at the top of the industry. Tan’s decision to conduct layoffs at Intel followed in the steps of his predecessor, as we saw cuts of a similar scale late last year in August under Gelsinger.
Around 15,000 members of Intel’s workforce were cut in 2024, freeing up considerable resources for the company to be able to reduce costs and turn things around. In 2023 as well, the company cut out approximately 15,000 jobs, scaling back from around 131,900 employees to 124,800.
Now, in 2025, Intel is downsizing once more under the new leader, but signs of progress towards company goals still remain to be seen. It is perhaps too soon to determine the impact of the new CEO’s leadership as his turn at the helm has only just begun, but Lip-Bu Tan did share some thoughts about the company’s future in a letter to employees last month.
CEO Lip-Bu Tan Aims to Make Intel an “Engineering-Focused Company”
After taking on the leadership role at the organization in March, the CEO released a statement to employees. Among other things, he explained that the goal was to develop the best products, listen to the customers, and hold themselves accountable to the commitments that are made in order to build trust. Unfortunately for employees, no promises were made to guarantee their interests in the statement.
The CEO’s message did make references to working as a team and trusting in each other to become founders of “The New Intel,” but the Intel layoffs in 2025 suggest that many employees will be left out of that mission.
“We cannot take anything for granted, and we will do regular deep dives to assess our progress. In areas where we have momentum, we need to double down and extend our advantage. In areas where we are behind the competition, we need to take calculated risks to disrupt and leapfrog. And in areas where our progress has been slower than expected, we need to find new ways to pick up the pace.”
CEO Lip-Bu Tan also suggested that under his leadership, Intel will start conducting regular deep dives to assess the company’s progress and explore new ways to speed it up. Intel is likely firing employees as a result of this exploration.
Are the Tariffs to Blame for Intel’s Layoffs?
With the recent tariffs and the resulting layoffs at other organizations, it’s easy to wonder whether Intel’s 20% layoffs could be in preparation for the rise in expenses. Fortunately for Intel, it already has large manufacturing operations within the country, particularly within Oregon and Arizona, so it should not face challenges in bringing certain products to the US market.
However, with Intel’s global presence and business model, it also has external productions to keep in mind. The company has to come to terms with the threat of retaliatory tariffs that might still hurt its business while working with customers outside the country or from production plants outside the US. Shares of the company were already affected negatively earlier this month following retaliatory tariffs announced by China.
The announced tariffs have disrupted major tech industries in a multitude of ways, and it will take time for major players to narrow in on a strategy that works best for them. For employees, however, the impact is almost immediate.
When Will We Know More About Intel’s Layoffs in 2025
The Intel layoffs coming in 2025 were reported a day ahead of Intel’s Q1 earnings report. This will be followed up by a call with the team. By Friday, we may learn more about the exact nature of the cuts, who are affected, and what severance compensation they can hope to seek.
The tech layoffs in 2025 have only just begun, as we expect to see more businesses turn to this strategy in a post-tariff era. Intel’s staff cuts in particular are bigger than expected, and could come with a serious pivot in strategy and priority this year. In 2024, the business had announced AI chips as the priority, and it’s unclear if that remains the goal right now.
Companies like Google and Microsoft have already made headway on their own layoff plans and we’ve seen the same scale of job cuts announced at various federal agencies like the CFPB and the HHS. All these job cuts suggest that 2025 is set to be a disruptive year for employees with the constant uncertainty of another downsizing announcement right around the corner.
Employees not affected by the cuts are still expected to be affected by the repercussions of the cuts, so it’s more important than ever for employers to start looking into keeping their handful of workers reassured and productive for the year that lies ahead.
We’ll update this space once we know more about the Intel layoff plans in 2025. Subscribe to The HR Digest for regular updates on how the world of employment is evolving around you right now.
