In a surprising move, Intel Corporation is planning to cut over 20% of its global workforce this week. This decision comes as the company struggles to stay competitive in the fast-changing tech world, especially with rising pressure from rivals in the AI and semiconductor industries.
Let’s break down what’s happening and what it means for tech workers and the industry.
Why is Intel Cutting Jobs?
According to a report by Bloomberg, Intel’s layoffs are part of a broader effort to reduce costs and eliminate unnecessary layers of management. The company has been under pressure due to:
- Falling PC sales worldwide
- Increased competition from companies like NVIDIA and AMD
- Growing demand for AI and server chips, where Intel is lagging behind
- Previous efforts to cut costs didn’t produce enough results
Intel’s CEO is reportedly focused on simplifying the company structure and boosting engineering efficiency.
How Many Jobs Will Be Lost?
More than 20% of Intel’s employees are expected to be affected. While the exact number isn’t confirmed, Intel had about 120,000 employees globally in 2024, so this could mean over 24,000 job cuts.
This isn’t Intel’s first wave of layoffs. In August 2024, it had already announced a 15% workforce reduction as part of a $10 billion cost-cutting plan.
What Does This Mean for the Tech Industry?
Intel’s move is a big signal for the entire tech world. Here’s why:
- Tech job security is shrinking, even at big, established companies
- AI and innovation are pushing traditional tech companies to evolve or risk falling behind
- Cost-cutting and restructuring could become common across other large tech firms facing similar challenges
It’s also a wake-up call for professionals in the chip-making and PC industry to upskill and adapt to the new demands in AI and high-performance computing.
What’s Next for Intel?
Intel is expected to release its Q1 earnings this Thursday, which will give more clarity on the company’s financial condition and future strategy. Investors, employees, and industry experts are watching closely.
The layoffs might help Intel lower costs, but will it be enough to turn things around? That’s the big question.
Intel’s job cuts are more than just a cost-saving move – they show how the tech world is changing rapidly. Companies need to innovate faster, adapt to new tech trends, and keep their operations lean to survive.
If you’re in tech, especially in traditional sectors like hardware or semiconductors, now’s the time to focus on AI, cloud computing, and modern skill sets.
Let’s hope the affected Intel employees find new opportunities soon, and that this marks the start of a smarter, more agile Intel.
