Intel announced a series of measures on Thursday (April 24), including layoffs, company restructuring, the elimination of non-core products, and a return-to-office mandate, as it reported its first-quarter earnings.
While the company has not disclosed the exact number of layoffs, it indicated that adjustments will begin in the second quarter and will unfold over several months. A Bloomberg report, citing an anonymous source, suggests that Intel may cut more than 20% of its workforce, potentially affecting nearly 20,000 employees. This follows a previous layoff in August 2024, when Intel reduced its workforce by 15%, approximately 15,000 employees.
To further streamline operations, Intel plans to reduce its operating expense target by $1.5 billion over the next two years. The company aims to lower its operating expenses to US$17 billion in 2025, a US$500 million reduction, and to US$ 16 billion in 2026, representing an additional US$1 billion cut.
In Q1 2025, Intel reorganized by integrating the Network and Edge Group (NEX) into the Client Computing Group (CCG) and the Data Center and AI Group (DCAI).
Additionally, Intel will mandate that all employees return to the office for four days a week, effective September 1.
CEO Lip Bu-Tan emphasized the opportunity to fundamentally reinvent Intel, stating, "It will require painful decisions. But we will make them know it's what we must do to serve our customers better as we build a new Intel for the future." He expressed confidence in the team's ability to drive this transformation.
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