Intel’s beleaguered workforce is facing potential bad news after at least one media report stated the struggling chip giant is planning more layoffs.

Bloomberg, citing a person with knowledge of the matter, reported that Intel is poised to announce plans this week to cut more than 20 percent of its staff, in order to eliminate bureaucracy at the firm.

The report comes after earlier this week it was reported that Intel’s new chief executive Lip-Bu Tan was carrying out a major restructure of the company’s leadership team, with major chip groups and technical executives reporting directly to him.

The new CEO reportedly viewed Intel’s middle-management as slow-moving and bloated, something that has slowed the company’s decision-making.

CEO Lip-Bu Tan

It was in March 2025 when Intel’s board had confirmed that after a three month search, it had appointed chip industry veteran Lip-Bu Tan as chief executive officer.

This came after former CEO Pat Gelsinger had been “retired from the company” in December 2024, over his perceived failure to respond to Nvidia’s competitive edge and a lack of confidence in his turnaround plan.

Almost immediately after his appointment it was reported that Lip-Bu Tan was considering sharp cuts to the company’s middle-management and changes to its manufacturing processes to improve usability and performance.

This was no surprise, as Lip-Bu Tan in August 2024 had suddenly informed Intel that he would be leaving Intel’s board of directors, “effective immediately,” stating it was a “personal decision.”

Lip-Bu Tan’s departure from Intel’s board last August came reports of differences with Pat Gelsinger and other directors, over what Tan considered Intel’s bloated workforce, risk-averse culture, and lagging artificial intelligence strategy.

Intel’s board had expanded Tan’s responsibilities in October 2023, authorising him to oversee manufacturing operations.

But over time, Tan had reportedly grew frustrated by Intel’s large workforce, its approach to contract manufacturing, and Intel’s risk-averse and bureaucratic culture.

New layoffs?

Now Bloomberg has reported that Lip-Bu Tan plans to cut more than 20 percent of the workforce, in order to streamline operations and reduce bureaucratic inefficiencies.

The layoffs are part of a broader strategy to refocus on an engineering-driven culture, the report said.

The report of new layoffs will come as bad news to a workforce, that has already been hit with multiple waves of job losses.

In August 2024 for example Intel confirmed it was axing 15,000 jobs (or 15 percent of staff), shrinking its headcount to nearly 109,000 at the end of last year.

Intel had previously laid off roughly 5 percent of its workforce in 2023, as well as a previous round of job cuts in October 2022.