Intel to Lay Off Up to 20% of Employees — Lip-Bu Tan Starts with Tough Measures
According to Bloomberg sources, Intel Plans to Fire to 20% of employees as part of a major cost-cutting move, the decision is said to be the new CEO's first major move Lip-Bu Tan, who recently took over the company. As of the end of 2024, Intel employed about 108 900 people, which means that more than 100 people could be subject to layoffs. 21 000 employees.
It is noted that similar information had already surfaced in the summer of 2024, when the layoff of 10 thousand people was discussed. However, the number of personnel has not changed significantly since then. The new report confirms: this time we are talking about much more large-scale measures. This coincides with the expectations of analysts, including - CJ Muse of Cantor Fitzgerald, who previously noted “aggressive cost cutting” and “high levels of motivation” under the new CEO.
Previously, at Pat Gelsinger Intel already had a $10 billion cost-cutting plan in place, but it remains unclear whether Tan is continuing on that course or is forming a new strategy.
The massive layoffs could be announced within days, just ahead of Intel's first quarterly earnings call for the first quarter of 2025. It will be the first under Lip-Bu Tan, and the actions suggest management is not planning to delay the reforms.
Analysts see the possible layoffs as a bullish signal for investors. Amid the rumors, Intel shares have already risen 2% in after-hours trading and 4% in the main session. Investors are also awaiting more announcements at the event. Intel Foundry Day, which will take place on April 29.
