Intel to Cut 21000 Jobs, Representing 20% of Its Workforce

Intel is set to cut over 21000 employees, representing about 20% of its workforce, according to a Bloomberg report.

Intel is set to lay off about 20% of its workforce, amounting to over 21,000 employees, according to a Bloomberg report.

The announcement is expected this week, just ahead of the company’s Q1 earnings call.

This leadership change marks a critical turning point for the struggling tech giant.

With these layoffs, Tan reportedly aims to “streamline management and rebuild an engineering-driven culture.” The company had around 108,900 employees at the end of last year after already announcing 15,000 job cuts in August 2024.

Intel has been facing serious challenges in recent years. Over the past five years, the company’s stock has plummeted around 67%.

Since taking the CEO role toward the end of 2024, Tan has moved to reorganize the company by spinning off divisions deemed “non-core” units.

Earlier this month, Intel sold 51% of its Altera semiconductor business to private equity firm Silver Lake. This move appears to be part of Tan’s strategy to refocus the company on its core operations.

The new CEO has pledged “to restore Intel’s position as a world-class products company,” and these rapid changes suggest he’s taking swift action to fulfill that promise.

Despite Tan’s credibility and eagerness, Wall Street expectations remain cautious ahead of tomorrow’s earnings call. Multiple analysts have lowered their price targets in recent days.

This skepticism is partly due to broader market concerns, including trade and tariff worries that have affected the tech sector.

It also reflects Intel’s recent performance struggles. The company’s Q4 2024 revenues dropped 7.4% year-over-year, while its Q1 2025 guidance fell short of expectations.

The stock has lost approximately 40% of its value over the past twelve months. However, its year-to-date losses of just 2% are performing better than many competitors.

Despite these challenges, some investors see potential for recovery. Bohdan Kucheriavyi, a 5-star investor, believes Intel has “growth opportunities due to the rising demand for AI chips and its strategic advantage in producing chips in its own foundries.”

Kucheriavyi points out that the AI PC market is growing rapidly, aligning with Intel’s goal to deliver more than 100 million AI PCs by the end of the year.

The investor also highlights the upcoming Panther Lake chip, which will be manufactured on Intel’s 18A process node, as a potential game-changer for the company.

When it comes to trade concerns, Kucheriavyi believes Intel’s U.S. presence may protect it from severe impacts. He even suggests the company could benefit from trade barriers on foreign competitors.

The dropping share price has made Intel stock more attractive to some investors. Kucheriavyi rates INTC a Buy, stating, “At the current price, the downside is likely limited, while the upside is significant.”

Wall Street overall holds a more cautious view, with 26 Hold ratings compared to just 1 Buy and 4 Sell ratings. The stock currently has a consensus Hold rating.

The 12-month average price target for Intel stock suggests a potential upside of approximately 15%.

The market will be watching closely as Tan leads his first earnings call tomorrow, potentially providing more details about the company’s restructuring plans and future strategy.