Intel to Lay Off Over 20% of Workforce: What You Need to Know

In a move that has sent shockwaves through the tech industry, Intel Corporation is reportedly planning to lay off more than 20% of its workforce. This decision comes as part of a larger effort by the company to cut costs and realign its business operations during a challenging economic climate and a shifting technology landscape.

Why Is Intel Taking This Step?

According to sources close to the matter, Intel is under increasing pressure from multiple directions:

• Falling Revenue: The company has seen a sharp decline in its PC chip sales, largely due to reduced consumer demand and slower device upgrades. With many people still holding onto older computers and economic uncertainty weighing on household budgets, sales in the PC segment have dipped considerably.

• Tough Competition: Intel is facing fierce competition from rivals like AMD and ARM-based chipmakers. These competitors have been gaining ground with innovative technologies and power-efficient chips that appeal to both consumer and enterprise markets.

• Restructuring Strategy: As part of its restructuring, Intel aims to simplify operations, reduce expenses, and refocus on its core strengths, especially in the data center and AI markets. The layoffs are a direct result of this new strategy to streamline the company and become more agile.

Who Will Be Affected?

While specific departments have not been officially confirmed, reports suggest that the cuts will span multiple business units. Some roles in engineering, sales, and support services may be affected. Intel has around 120,000 employees globally, which means that a 20% cut could impact over 24,000 people.

This is one of the largest layoffs in Intel’s history and highlights the scale of transformation the company is undergoing. Employees in the United States and other major Intel locations, such as Israel, Ireland, and India, may all be affected.

What Does This Mean for the Tech Industry?

The news has created a ripple effect across the technology sector. Intel is not the only tech giant facing challenges. Over the past year, several companies — including Google, Meta, Amazon, and Microsoft — have also downsized their workforces to adjust to slower growth and rising operational costs.

However, Intel’s decision to cut such a large portion of its staff stands out due to its scale and timing. It reflects a deeper trend in the semiconductor industry: rising costs of chip production, supply chain pressures, and the growing need to adapt to new markets like AI, cloud computing, and edge devices.

What's Next for Intel?

Intel's leadership, under CEO Pat Gelsinger, has been focusing on making the company more competitive globally. Despite the layoffs, Intel continues to invest in its foundry business, aiming to manufacture chips for other companies and reduce dependency on Asia-based production.

The company also remains committed to developing advanced chip technologies and strengthening its role in national tech security, especially in the United States and Europe.

Final Thoughts

While job cuts are never easy — for the employees, their families, or the company — Intel's move appears to be a strategic  effort to stay afloat and regain its position as a global leader in innovation. For those affected, it's a time of uncertainty, but also possibly new opportunities as the tech world continues to evolve.

We’ll keep following this story and bring updates as more details emerge. For now, it’s clear that the technology sector is entering a new phase — and Intel is making bold moves to stay in the game.