Massive Layoffs: Intel to Streamline 21,000 Employees in Major Restructuring Move

Intel, a giant in the semiconductor manufacturing industry, is preparing for another massive layoff, with plans to streamline up to 21,000 employees in less than a year.

1. Intel’s Second Major Layoff Within a Year

According to Bloomberg, the upcoming restructuring aims to streamline management and rebuild Intel’s corporate culture around a more "engineering-driven" foundation.
This will mark the first major move under the leadership of Lip-Bu Tan, who officially took over as Intel’s CEO in March 2025 and is preparing to release his first quarterly earnings report.

Previously, in August 2024, Intel already cut 15,000 jobs, reducing the company's workforce to 108,900 employees. This new layoff in 2025 is expected to slash an additional 20% of the workforce, potentially affecting nearly 21,000 positions.

2. Fierce Competition in the Semiconductor Industry

Intel’s bold decision comes as the company continues to lose market share to key competitors like Apple, AMD, and Nvidia — all of whom outsource chip manufacturing to TSMC based in Taiwan.

In the semiconductor world, rapid innovation and quick adaptability are critical, and Intel’s struggle to keep pace with industry shifts has placed significant pressure on its leadership.

3. A Message of Determination from CEO Lip-Bu Tan

In a letter to employees in March 2025, Tan expressed strong confidence in Intel’s future:
"We will strive to develop the best products, listen seriously to our customers, and hold ourselves accountable to our commitments to rebuild trust," he wrote.

He outlined a clear strategic approach:

Double down on areas where Intel already has momentum.

Take calculated risks in underperforming sectors to break through and overtake competitors.

4. Potential Political Factors?

It remains unclear whether new tariffs introduced by President Trump are directly linked to Intel’s latest restructuring.
Recently, Trump and Commerce Secretary Howard Lutnick announced that semiconductors would fall under a special tariff category, with potential import taxes reaching 25% or higher, posing new challenges for tech companies like Intel.

Gain a competitive edge with up-to-date market intelligence from InfoFinance – follow us for the latest insights.