Intel Corp. is planning to reduce its workforce and implement a stricter return-to-work policy in the upcoming months. However, specific layoff numbers were not disclosed in the quarterly earnings report released on April 24 or in a message from the new CEO.
Recent media reports suggest that Intel could potentially lay off more than 20% of its workforce, which totaled approximately 109,000 employees at the end of last year, including 12,000 in and around Chandler. The semiconductor giant faced a loss of $18.8 billion in 2024 due to a decline in performance.
In the first quarter ending on March 31, 2025, Intel reported a loss of $821 million on revenue of $12.7 billion. This loss widened from $437 million in the same period in 2024, despite the revenue remaining the same.
The new CEO, Lip-Bu Tan, emphasized the necessity of overhauling Intel's culture to adapt to changing demands.
In a message sent to all employees and posted on the company's website, Tan stated, "We are seen as too slow, too complex and too set in our ways - and we need to change."
Tan hinted at upcoming job reductions within the current quarter, spanning over several months, as part of a series of bold actions he plans to take. These actions include restructuring the executive team, empowering engineers, streamlining teams, reducing meetings, and limiting meeting attendance.
Additionally, Tan announced a revised return-to-work policy, requiring some employees currently working three days on-site to increase to four days starting on Sept. 1.
Recognizing the need for Intel to become more efficient and agile, Tan stressed the importance of making critical changes, including reducing the workforce while retaining key talent.
With a significant presence in Arizona, Intel employed about 13,000 workers as of September but recent estimates put the number closer to 12,000. In October, Intel announced 385 layoffs in Arizona.
Intel, known for manufacturing most of its chips domestically, operates in multiple states including Arizona, Oregon, Texas, and California. Despite not being affected by tariffs on chip production, the company imports components from China which could face tariffs, posing a risk to Intel's operations.
The downsizing initiative is part of Intel's strategy to streamline operations, cut costs, and refocus on engineering excellence. Reports of potential layoffs exceeding 20% originated from Bloomberg News, citing anonymous sources.
Lip-Bu Tan assumed the CEO position in late first quarter of 2025, succeeding the previous CEO, Pat Gelsinger. Tan, a veteran in the semiconductor industry, previously served as the CEO of Cadence Design Systems and has received numerous accolades for his contributions to the industry.
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