Intel has begun a major reorganization to adapt to market changes and technological competition. New CEO Lip-Bu Tan has introduced a series of measures that include a 15 percent reduction in the total number of employees and additional layoffs. The goal of these moves is to create a more flexible and efficient corporate structure that can respond to the challenges of the modern market.
According to the latest reports, the company plans to keep only 75,000 employees in its primary organization by the end of 2025, excluding subsidiaries such as Mobileye. This rationalization of the workforce also includes the termination of several projects in Europe and the slowdown of investments in new chip production in the United States, in order to align costs with the real needs of the market.
Despite a net loss of almost three billion dollars in the last quarter, stock market investors have shown some confidence – the value of the shares has increased, and the market is reacting positively to the strategic changes that Tan is introducing. Although the numbers are negative, investors clearly recognize the company's long-term intention to regain its position in the industry.
One of the key reasons for Intel's decline was its slow response to two major technology trends – mobile platforms and artificial intelligence. Competitors, especially Nvidia, have taken advantage of the vacuum and taken the lead, reaching historic highs in market value. At the same time, Intel has been forced to restructure its business to stay relevant.
The mass layoffs are not an isolated incident. A number of large companies, including Microsoft and Meta, have also reduced their workforces this year. But for Intel, these changes mean much more than cutting costs – they represent an attempt to restore its former leadership position and catch up with global technology trends that are increasingly shaping the semiconductor market.