Intel Plans To Slash Over 20% Of Workforce As Lip-Bu Tan Carries Out Major Restructuring: Report

Benzinga
2025.04.23 01:50
portai
I'm PortAI, I can summarize articles.

Intel plans to cut over 20% of its workforce as part of a major restructuring under new CEO Lip-Bu Tan, aiming to streamline operations and reduce bureaucracy. This marks the first major overhaul under Tan, who was appointed last month. The layoffs target organizational complexity, with key divisions now reporting directly to him. Intel shares rose 3.56% on Tuesday, closing at $19.51, and added another 2% in after-hours trading. The company is set to report its earnings on Thursday.

Intel Corporation INTC reportedly plans to reduce more than 20% of its workforce as part of a major overhaul under new CEO Lip-Bu Tan.

What Happened: The layoffs are targeted toward reducing bureaucracy and streamlining Intel's focus on engineering excellence, reported Bloomberg on Tuesday, citing a person with knowledge of the matter.

Tan was appointed the new CEO of Intel last month. This overhaul would mark the first major restructuring under him.

Last year, Intel revealed plans to slash 15,000 jobs. The company had 108,900 employees by the end of last year, the report noted.

Intel did not immediately respond to Benzinga's request for comments.

See Also: Ford Recalls Nearly 150,000 Vehicles Over Brake And Powertrain Issues: NHTSA

Why It’s Important: Last week, Reuters cited an internal memo from Intel and reported that Tan has decided that data center, AI, and personal computer chip divisions will now report to him directly.

"It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win," he reportedly said in the memo, adding, "It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution."

Intel is scheduled to report its earnings on Thursday after the market closes.

Price Action: Intel shares rose 3.56% on Tuesday, closing at $19.51. The stock added another 2% in after-hours trading, climbing to $19.90. Year-to-date, the chipmaker is down 3.51%, according to Benzinga Pro.

Intel currently has a growth score of 3.59% based on Benzinga Edge Stock Rankings. Click here to see how it compares to other top semiconductor stocks.

Photo Courtesy: Tada Images On Shutterstock.com

Read Next:

  • Charlie Munger Once Said Warren Buffett Is A ‘Learning Machine' And That's What Lies Beneath Berkshire Hathaway's Success From One Decade To Another
Source: Benzinga The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.