Intel could be set to announce one of the biggest rounds of tech layoffs we’ve seen in months, with thousands of workers set to leave.
A report from Bloomberg claims the Santa Clara chipmaker could be set to announce a 20% reduction to its workforce as soon as this week, which would equate to around 21,000 workers.
The company is set to announce its first-quarter financial – the perfect opportunity to confirm any cost-cutting measures such as layoffs.
Intel could be about to lay off 20% of its workforce
If they go ahead, the layoffs would streamline management, cut costs, reduce bureaucracy and help Intel to refocus on becoming an engineering-driven, product-focused company. All things Intel;s new CEO, Lip-Bu Tan, has alluded to since taking on the role.
Intel had a particularly troubling fourth quarter, with revenue dropping 7% year-over-year. The full 12-month period wasn’t especially positive, either, with a 2% year-over-year decrease in revenue to $53.1 billion.
“The cost reduction plan we announced last year to improve the trajectory of the company is having an impact,” CFO David Zinsner explained.
Although quarter-one results have not yet been announced, Zinsner said he expected “macro uncertainties, further inventory digestion and competitive dynamics” to weaken performance.
Intel shares are down 43% over the past year alone, with the company currently sitting at a market cap of $85.07 billion.
To put that into perspective, AMD’s total valuation is currently $140.14 billion, and Nvidia is the third-most valuable company in the world and one of only eight to measure its market cap in trillions, not billions, at $2.412 trillion.
Looking back, Intel has already laid off thousands in the past couple of years, including a staggering 15,000 workers in August 2024.
Intel told us it won’t be providing a comment on this because it does not comment on rumor or speculation.
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