Intel Restructures Workforce: Layoffs and Strategic Focus
Summary:
- Intel has laid off around 100 employees recently, contributing to a total of over 35,000 job cuts within two years.
- The layoffs predominantly impact engineering sectors rather than management roles.
- The company is strategically reducing costs while concentrating on high-return projects, particularly in AI and advanced technologies.
Intel Corporation has made significant adjustments to its workforce, recently laying off approximately 100 employees. This decision is part of a broader restructuring initiative spearheaded by the new CEO, Chen Liwu. Over the past two years, Intel has reduced its workforce by over 35,000 employees, including about 20,500 layoffs this past summer alone.
Financial Overview of Recent Layoffs
Recent financial disclosures reveal that the bulk of Intel’s layoffs occurred in the second quarter of 2025, with reorganization costs exceeding $1 billion. In contrast, the third quarter incurred only $175 million in expenses related to these changes. As of September 27, 2025, Intel’s workforce consisted of 88,400 employees, which includes 83,300 at its headquarters and 5,100 at subsidiaries like Mobileye. This represents a significant decrease from last year’s total of 108,900 employees.
The rapid reduction of personnel coincided with Chen Liwu’s assumption of leadership, illustrating a decisive shift in corporate strategy. Prior to his leadership, Intel had already eliminated approximately 15,000 positions. Overall, the staffing cuts highlight the challenging landscape Intel finds itself in.
Impact on Engineering Teams
While the restructuring plan initially suggested a focus on trimming mid-level management positions, the reality reveals that engineering and technical departments bear the brunt of layoffs. Notably, only 8% of the affected personnel held managerial titles, underscoring the extensive impact on engineering resources crucial to the company’s technological advancement.
Strategic Realignment and Cost Management
Intel’s third-quarter financial report also indicated a reduction of $800 million in its annual research and development budget compared to the previous year, despite a rise in revenue. This budget decrease signals a shift in focus towards fewer but more strategic projects, aiming to optimize resource allocation.
During an earnings conference call, Intel executives reiterated their commitment to a "right-sizing" strategy. The emphasis is on controlling costs while honing in on high-return projects. Intel’s CFO, David Zinsner, stated that the company anticipates operating expenses will hold steady at approximately $16 billion through 2026, emphasizing investment only in initiatives that promise clear, strategic returns. Key areas of focus include:
- The mass production of the Intel 18A process
- Development of the 14A node
- Products related to artificial intelligence
- Advanced packaging technology
Chen Liwu remarked that Intel’s current strategy aims to build a leaner and more focused organization. By integrating overlapping projects and concentrating on three core businesses—client solutions, data centers, and artificial intelligence—Intel seeks to fortify its market position.
A Leaner Future for Intel
In an era where efficiency and effectiveness are paramount, Intel is committed to aligning its size with long-term profitability goals. The company’s operational strategy focuses on maintaining stability while seeking efficiency improvements across all functional areas. This approach is essential in ensuring that Intel remains competitive in a rapidly evolving landscape.
Intel’s journey reflects a significant transformation, shaped by external pressures and internal assessments. The measures taken under Chen Liwu’s leadership are indicative of a broader industry trend towards optimization and innovation. As the company navigates these changes, the commitment to high-return projects will play a pivotal role in its future success.
Conclusion
As Intel continues to refine its workforce and strategic focus, the implications of its restructuring efforts will resonate throughout the industry. While layoffs can often signify challenges, in Intel’s case, they represent an opportunity for realignment and renewed focus on core competencies. Moving forward, the emphasis on engineering excellence and innovative technologies will be crucial in maintaining Intel’s competitive edge in the semiconductor market.
