Intel To Lay Off 15% Of Workforce, Cut Strength To 75,000 Employees By Year-End

Intel Corp. Chief Executive Officer Lip Bu Tan stressed on cost-discipline, while addressing the stakeholders on Thursday. This will include the planned layoffs, which the company had announced earlier.

The tech giant is trimming the workforce by 15%, as it aims to bring down the total headcount to 75,000 by the end of the year. This would mark a 15% reduction as against the overall strength which stood at 96,400 as of June-end.

Intel had first announced its layoff plans in April. The job cuts will help the company in streamlining their management along with rebuilding an engineering-driven culture, a major step taken under Lip-Bu Tan.

Last August, the company cut approximately 15,000 jobs, and by the end of 2024, Intel’s employee count had dropped to 108,900, a fall from 124,800 the year before.

Earlier, this month, Intel was set to lay off 529 employees at its Aloha and Hillsboro campuses in Oregon from July 15.

The move follows an earlier round of 107 job cuts at its Santa Clara headquarters in California, showing a broader industry trend. Technology giants are downsising in response to slowing growth and shifting focus toward AI and automation.

Other technology giants including Microsoft, Google and Amazon have trimmed their workforces in recent months.

Microsoft is slashing off around 9,100 employees this July, a second major round of job cuts this year. In May, it laid off 6,000 employees. Amazon has started a selective job cut as part of its plan to include AI into more areas of its business. In June, it trimmed around 100 jobs in its books division.

In a memo, CEO Andy Jassy said that more reductions will take place in areas including customer service, human resources and software development, where generative AI is expected to automate significant workloads.