Intel to Cut 21,000 Jobs Under CEO Tan's Turnaround Plan

Intel Corp, the struggling American chipmaker, is set to announce another round of mass layoffs this week as its new Chief Executive Officer, Lip-Bu Tan, moves forward with a sweeping plan to streamline the company’s operations. The report comes just a day before the California-based firm is scheduled to release its first-quarter earnings.

According to Bloomberg, CEO Tan plans to cut more than 20% of Intel’s workforce, affecting around 21,000 employees. As of the end of 2024, the company had 108,900 employees. This follows a previous round of layoffs in August 2024 that saw around 15,000 jobs eliminated.

The report states that Tan’s strategy focuses on cutting bureaucracy and reviving an engineering-driven culture. In March, he outlined his goals to replenish lost engineering talent, improve Intel’s balance sheet, and streamline its manufacturing processes.

The 65-year-old executive took over after the ouster of CEO Pat Gelsinger in 2024, following three consecutive years of sales declines. During Gelsinger’s tenure, Intel faced fierce competition from rivals like Nvidia and AMD in producing advanced GPUs that power AI systems, as well as from Taiwan Semiconductor Manufacturing Co. (TSMC) in the chip fabrication sector.

Gelsinger had also launched an ambitious and costly effort to expand Intel’s factory network and reposition the company as a made-to-order chip manufacturer, in a bid to compete directly with TSMC.

Efforts to Revive Intel

Now, CEO Lip-Bu Tan is taking a different approach by shedding non-core businesses. Last week, Intel announced the sale of a 51% stake in its programmable chip unit, Altera, to Silver Lake Management.

Reports also suggest Intel will delay its chip plant expansion efforts in the U.S. The company had previously committed to building large-scale manufacturing plants in Ohio and Arizona, as well as advanced packaging facilities in New Mexico and Oregon. However, these projects are now in limbo as President Donald Trump considers cutting federal support programs that subsidize such initiatives.

During his address to Congress, President Trump criticized the $52.7 billion CHIPS and Science Act, launched by his predecessor Joe Biden, calling it “horrible” and signaling plans to cancel the program. The Act has been a key funding source for semiconductor expansion projects across the country.

Bleak Outlook for Q1

Meanwhile, Wall Street expects Intel to post a steep 94.4% decline in earnings to $0.01 per share for the quarter ended March 2025, with revenue projected at $12.32 billion—a 3.2% year-on-year drop, according to Zacks Equity Research.

Intel’s earnings report, scheduled for release on April 24, could significantly impact the stock depending on how actual results compare with expectations. Analyst sentiment has been slightly negative, with the consensus EPS estimate revised down 2.11% over the past month.