Intel is set to unveil plans this week to slash more than 20 per cent of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies, Bloomberg News reported, citing a person familiar with the matter.
The layoffs are part of a broader strategy to refocus on an engineering-driven culture, the report said.
Intel did not immediately respond to a Reuters request for comment.
The layoffs mark the first major move under new chief executive Lip-Bu Tan, who took over last month to revive the struggling Silicon Valley chipmaker after years of challenges.
Last month, Reuters reported that Tan was considering significant changes to its chip manufacturing methods and artificial intelligence strategies.
The new trajectory involved restructuring Intel's AI strategy and implementing staff cuts to address what Tan described as a slow-moving and bloated middle management layer.
Shortly after his appointment, he told employees in a town hall that the company will have to make "tough decisions."
Last week, Reuters reported that Tan was restructuring the company by flattening its leadership team, with key chip groups now reporting directly to him.
The planned layoffs follow a significant reduction in workforce last August, when Intel said it planned to cut 15 per cent of its jobs, or approximately 15,000 positions.
The job cuts in 2024, part of a US$10 billion cost-reduction plan aimed for this year, were driven by high costs, shrinking margins in Intel's core PC and data center segments, and an expensive pivot to AI chips - an area where Intel has trailed competitors such as Nvidia.
The California-based company had 108,900 employees at the end of 2024, according to a filing.
The chipmaker is scheduled to report its first-quarter results on Thursday, US time.
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