• Intel will cut more than 20% of its workforce to address bureaucratic inefficiencies.
• The layoffs are part of a larger restructuring plan under new CEO Lip-Bu Tan.
• This move follows a previous reduction of approximately 15,000 jobs last year.

Intel is set to announce plans this week to cut over 20% of its global workforce as part of an effort to eliminate bureaucracy at the chipmaker, according to reports from channelnewsasia, scmp, and indiatimes. The decision marks the first significant restructuring under new CEO Lip-Bu Tan, who aims to refocus the company on an engineering-driven culture.

The layoffs, which are expected to impact thousands of employees, follow Intel's previous jobs cut last year when around 15,000 positions were eliminated, reducing the workforce to 108,900 by the end of 2024, according to scmp and indiatimes. Tan's strategy includes not only reorganizing management but also removing cutting-edge technology gaps and tackling increased competition from rivals like Nvidia and AMD.

Tan's restructuring plans intend to streamline operations and focus on core business areas, which includes advanced chip design and manufacturing. This restructuring is deemed crucial for Intel to regain its competitive edge, especially in the face of financial pressures, as the company grapples with declining revenue and mounting losses due to missed opportunities in markets such as artificial intelligence, according to channelnewsasia, indiatimes, and sfgate.

Moreover, prior expansions like the envisioned Ohio facility—targeted to become a significant chip production site—have also been postponed, significantly impacting the company's growth trajectory, as noted by sfgate. With formal earnings reports planned shortly, Tan has expressed confidence that these restructuring efforts, while difficult, are necessary to solidify Intel's foundation for sustainable future operations.