Intel is preparing to announce the biggest organizational restructuring in its history this week, with plans to cut more than 20% of its global workforce — over 21,800 employees — according to multiple reports. The move is part of a sweeping effort to streamline operations, reduce bureaucracy, and restore an engineering-driven culture under newly appointed CEO Lip-Bu Tan.

Sources familiar with the matter told Bloomberg that the layoffs are aimed at eliminating inefficiencies within Intel's management layers. The company had 108,900 employees at the end of 2024, and the cuts would reduce staffing levels to those last seen in 2010.

This marks Intel's first major restructuring under Tan, who took over last month amid mounting pressure to revive the struggling chipmaker. Reuters previously reported that Tan has been exploring major shifts in Intel's manufacturing and AI strategies. Shortly after his appointment, he warned staff that “tough decisions” were ahead and began flattening Intel's leadership hierarchy, with core business units now reporting directly to him.

The announcement follows a series of cost-cutting rounds in recent years. In 2022, Intel laid off around 12,000 employees in response to a slumping PC market. In 2023, structural cuts focused on the Client Computing Group (CCG) and Data Center and AI (DCAI) divisions, trimming 20% of staff and slashing budgets by 10%. By mid-2024, facing continued financial headwinds, Intel announced another 15% reduction — roughly 15,000 jobs — as part of a $10 billion cost-saving initiative.

Intel's financial performance has been deteriorating. In 2024, revenue dropped 2% to $53.1 billion, while its stock plummeted 60%, wiping out over $100 billion in market value. The outlook remains bleak: the company projects first-quarter 2025 revenue between $11.7 billion and $12.7 billion — a steep decline from previous quarters.

Intel is scheduled to report Q1 earnings this Thursday, with investors closely watching how Tan's restructuring plans will impact the company's turnaround efforts.