American International Corporation and Technology Company Intel announced its intention to reduce more than 20% of its workforce.
According to Bloomberg, the next layoffs are part of the wider plan of the CEO LIP-BU Tan to build a first engineering culture and restructure its assessment, in the light of the growing competition of Nvidia and TSMC.
This decision follows a difficult period for Intel, which saw its stock fall by 67% over five years and lost technological land because of competitors like Nvidia in AI computer science. The company has declared three consecutive years of falling sales and loss of assembly. In accordance with this, last year, the company reduced approximately 15,000 jobs, reducing its workforce from 124,800 to 108,900 at the end of the year.
Register For TEKEDIA Mini-MBA Edition 17 (June 9 – September 6, 2025)) Today for early reductions. An annual for access to Blurara.com.
Tekedia Ai in Masterclass Business open registration.
Join Tekedia Capital Syndicate and co-INivest in large world startups.
Register become a better CEO or director with CEO program and director of Tekedia.
This drastic measure was motivated by the drop in income, increased competition and the need to reduce costs. The layoffs had an impact on various departments, including research and development, sales and marketing.
Tan, who was appointed CEO of Intel in March 2025, rationalizes operations by reporting directly to key flea groups and rethinking Intel’s strategy. The restructuring includes the loss of non -essential active ingredients, illustrated by the 4.46 billion dollars agreement last week to sell a 51% stake in its programmable chip unit in Silver Lake Management. The agreement, which values altera at $ 8.75 billion, half of the $ 17 billion, paid in 2015, provides critical species after costly investments in the manufacture of contracts under the former CEO Pat Gelsinger.
The layoffs and the strategic pivot aim to approach the inflated intermediate management of Intel and to find a competitive advantage. The announcement follows Tan’s effort to flatten leadership and refocus the company on convincing and innovative products.
According to analysts, the changes to the Intel management team by the new CEO, after a little more than a month of work, are proof of the sense of urgency in the company to act quickly to compete with the NVIDIA, AMD and TSMC rivals. Despite being a dominant player in many markets, Intel is currently faced with strong competition and many threats to its activities.
The company now drags behind Nvidia, which currently dominates the AI market, in particular in high -end training models, in the meantime, Intel has an advantage with ACC CPUs of AI for IA based on inferences. The acquisition of Intel in Habana also provides a personalized AI chip (Gaudi) which competes with the A100 family in Nvidia. Accelerators integrated into low -end AIs in the arms -based systems can serve the lower end of the market, but Intel should grasp a large part of the overall AI market.
Although Intel has produced quality software for years and made important contributions to industry initiatives, it will have to work hard to be perceived as a competitive business level software provider. Nevertheless, this area represents an area of income growth if Intel can succeed.
Intel has lagged behind in processes technology, but continues a “catching up and exceeding” strategy by opening its production facilities to external flea companies. Although he has signed high -level businesses, such as Mediatek, he remains to be seen how competitive he can be against TSMC, Globalfoundries, Samsung and others.
To summarize, Intel is confronted with several challenges in the maintenance or reproduction of the market share, but it repels effectively in several key areas. Although it could take a few years before all of its efforts are bearing fruit, analysts are optimistic Intel is in a better position now than before.
