Intel is expected to announce plans this week to cut more than 20% of its global workforce, according to a Bloomberg report citing sources familiar with the matter. The move is said to be part of a sweeping strategy to streamline operations and eliminate bureaucratic inefficiencies within the company.
While the company has yet to confirm the reported layoffs, a spokesperson for Intel Ireland told RTÉ News that the company would not comment on “rumour and speculation.”
The reported job cuts mark the first major step by Intel’s new CEO, Lip-Bu Tan, who took the reins last month with a mandate to revive the fortunes of the struggling chipmaker. Tan is reportedly undertaking a broad restructuring effort, including a refocus on engineering and a flatter corporate structure.
The anticipated redundancies follow a previous reduction in August 2024, when Intel announced plans to cut 15% of its global workforce—approximately 15,000 jobs—as part of a $10 billion cost-cutting initiative. At the end of 2024, Intel employed 108,900 people globally, including 4,900 staff at its Lexilip facility in Co Kildare.
Enterprise and Employment Minister Peter Burke is engaging with Intel officials about the reported changes and remains in contact with IDA Ireland, though he is not expected to issue a formal statement until the full implications for Irish workers become clearer.
Industry sources suggest the new wave of cuts is aimed at trimming what Tan described as a “bloated” middle management layer. The company is also reportedly reviewing its manufacturing strategies and artificial intelligence roadmap, areas where Intel has struggled to keep pace with competitors such as Nvidia.
Last week, Reuters reported that Tan had already begun flattening Intel’s leadership hierarchy, with key chip divisions now reporting directly to him. During a recent company town hall, the CEO warned staff that “tough decisions” were ahead.
Intel is scheduled to release its first-quarter earnings tomorrow. Analysts are expected to scrutinise the company’s forward guidance closely for more details on the restructuring and its potential impact on operations and staffing levels worldwide.
With thousands of jobs potentially at stake, including in Ireland, the reported layoffs are likely to be met with concern among employees and government stakeholders alike.
