Intel has always been a leader in the tech sector; let’s say it is a historic name in computational terms, but it is about to execute a heartbreaking plan: a massive layoff with which they intend to eliminate 21,000 jobs in the coming weeks. This is reported by Bloomberg. This latest wave comes less than a year after, in 2024, they cut another 15,000 jobs.
This change is not isolated, of course not, it reflects the internal changes the brand is undergoing under the leadership of its new CEO, Lip-Bu Tan.
Everything seems at first glance like a way to adjust the company (which had 124,800 workers in 2023), but the reality is that this change hides something more: they want to start a new strategy, getting rid of a good part of the executives and focusing again on what, according to them, really matters: engineering.
Fewer bosses, more engineers: Intel’s new plan
If this new round of layoffs goes ahead, they would be left with about 88,800 employees. That is, almost 28% less staff in less than two years. Brutal.
The official excuse? Simplify the company’s structure and recover that innovative spirit that once took them to the top. For the new management team, offices are unnecessary and what is missing are real engineers, they want people who can help Intel compete against other tech giants (competitors) who are taking over the market, and having so many management positions does not provide strategic or any other kind of value according to this new CEO.
A radical change… that could be very costly
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This move is not exactly what the rest of the big tech companies have been doing. For years, the trend had been just the opposite: inflating management layers to manage runaway growth.
But the results have not always been good, and now Intel wants to set a new course. The idea is to save costs on manager salaries and put that money into research and development. Will it work? That is the big bet.
It is not just about saving
That Intel wants to tighten its belt is no surprise. When they cut 15,000 jobs last year, they already said their goal was to save 10 billion dollars before the end of 2025.
But the problem goes beyond saving. Although artificial intelligence is revolutionizing everything, Intel has not managed to take off as it should in that field. Their AI revenues are not growing at the rate they would need to compensate for the decline in their traditional businesses.
And the tariffs?
The White House’s news about imposing tariffs on the entire foreign market has broken Intel’s plans. For now, chips are exempt from the new 145% taxes on Chinese products, but Trump has already hinted that he wants to extend them to electronics in general.
If that happens, companies like Intel, which depend quite a lot on components and manufacturing in Asia, will see their costs skyrocket. Another blow that could come at the worst possible time…
Bad news also in the stock market
The market is not giving any respite either. Intel’s shares have fallen 40% compared to last year. A crash that makes it clear that investors are not very convinced that the plan of cuts and reinvention is going to work.
On April 24, Intel will present its results for the first quarter of 2025. And believe me, everyone is going to be closely scrutinizing those numbers to see if the layoffs are just an emergency patch or part of a plan that really has a future.
Rebirth or free fall?
Cutting 21,000 jobs sounds like a desperate measure. It may be just what they needed to save themselves… or it may end up being the beginning of the end.
We will have to wait to find out. But one thing is clear: Intel can no longer afford another misstep.
