Intel’s new CEO signals streamlining efforts but does not spell out exact layoff numbers

The new CEO of Intel, Lip-Bu Tan, has warned that the company will slash 20% of its workforce, which represents approximately 21,780 jobs, though the exact number has not been confirmed.
In a letter to employees, Tan did not reveal a specific target for employee reductions but cited a new non-GAAP operating expense target of $17 bn f or 2025 in s t e a d o f t h e p re v i o u s l ys t a t e d$ 17.5bn, with $16bn expected in 2026.
The cuts are an attempt to make the company more efficient and competitive, with Tan citing Intel’s slow pace, complexity and set ways as areas that need overhauling.
The company has been losing market share in AI/graphics to Nvidia and in the x86 processor market to Advanced Micro Devices, while also facing a challenging macroeconomic climate.
As part of the changes, Tan is looking to simplify the business, empower engineers and reduce costs through internal changes and sale of parts of the business, such as the 51% sale of its Altera programmable logic division to Silver Lake Partners for $9bn.

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