Intel Layoffs: Why 20% of Jobs Are Being Cut?
What is the reason for Intel Layoffs?
Intel is reportedly gearing up to slash over 20% of its workforce, amounting to more than 20,000 jobs, as part of a sweeping cost-cutting and restructuring effort. This move, first reported by Bloomberg, is said to be a key element of the company’s revival strategy under its new CEO, Lip-Bu Tan.
The job cuts are intended to streamline operations, reduce bureaucracy, and refocus the tech giant on its engineering roots. Intel has faced ongoing business challenges, and Tan’s approach appears to be a bold reset: cutting unnecessary management layers, axing duplicate roles, and steering the company back to its product-driven culture.
Who Will Be Affected?
So far, it’s unclear which specific roles are on the chopping block. In 2024, Intel had approximately 108,900 employees, including those at Altera (now a separate entity co-owned by Intel and Silver Lake). The scale of the expected layoffs means that middle management and potentially even engineering teams could be impacted—unlike the last round of job cuts in August 2024, which primarily hit administrative, sales, marketing, and support roles.
Is This the First Time Intel Has Laid Off Employees?
No. This move follows a significant workforce reduction last August when about 15,000 roles were eliminated. That wave of layoffs largely spared Intel’s manufacturing and engineering arms, in line with the company’s focus on its foundry goals and product innovation. But this new round seems likely to dig deeper, possibly touching areas previously protected.
Lip-Bu Tan, who stepped into the CEO role just last month, appears to be leading this charge. Interestingly, reports suggest Tan previously left Intel’s board of directors due to disagreements over the size of earlier job cuts. Now at the helm, he seems to be implementing a vision he’s long advocated for: a more aggressive restructuring.
Are Voluntary Exits Being Offered?
At this time, it’s unclear whether Intel will offer buyouts, early retirement packages, or other voluntary exit options. The company hasn’t commented publicly, as it’s currently in its quiet period ahead of Thursday’s quarterly earnings report.
What Should You Do If You’re Affected by Intel’s Layoffs?
If you’re among the thousands of employees impacted by Intel’s reported job cuts, it’s important to understand your legal rights, especially when it comes to severance pay. In Ontario, non-unionized employees may be entitled to significantly more compensation than what’s initially offered.
Your entitlement to severance depends on key factors such as your position, salary, length of service and age. In some cases, employees may be owed up to 24 months’ pay.
At Whitten & Lublin, our team of employment lawyers has extensive experience helping tech sector employees navigate workplace terminations. If you’ve been impacted by Intel’s restructuring, contact us online or call (416) 640 2667 to ensure you’re getting the severance you are owed.