- Intel reportedly preparing to lay off 21,000 workers – around 20% of its workforce
- It also laid off 15,000 workers less back in August 2024
- CEO Lip-Bu Tan wants to address the company’s current strategy
Intel could be set to announce one of the biggest rounds of tech layoffs we’ve seen in months, with thousands of workers set to leave.
A report from Bloomberg claims the Santa Clara chipmaker could be set to announce a 20% reduction to its workforce as soon as this week, which would equate to around 21,000 workers.
The company is set to announce its first-quarter financial – the perfect opportunity to confirm any cost-cutting measures such as layoffs.
Intel could be about to lay off 20% of its workforce
If they go ahead, the layoffs would streamline management, cut costs, reduce bureaucracy and help Intel to refocus on becoming an engineering-driven, product-focused company. All things Intel;s new CEO, Lip-Bu Tan, has alluded to since taking on the role.
Intel had a particularly troubling fourth quarter, with revenue dropping 7% year-over-year. The full 12-month period wasn’t especially positive, either, with a 2% year-over-year decrease in revenue to $53.1 billion.
“The cost reduction plan we announced last year to improve the trajectory of the company is having an impact,” CFO David Zinsner explained.
Although quarter-one results have not yet been announced, Zinsner said he expected “macro uncertainties, further inventory digestion and competitive dynamics” to weaken performance.
Intel shares are down 43% over the past year alone, with the company currently sitting at a market cap of $85.07 billion.
To put that into perspective, AMD’s total valuation is currently $140.14 billion, and Nvidia is the third-most valuable company in the world and one of only eight to measure its market cap in trillions, not billions, at $2.412 trillion.
Looking back, Intel has already laid off thousands in the past couple of years, including a staggering 15,000 workers in August 2024.
Intel told us it won’t be providing a comment on this because it does not comment on rumor or speculation.
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