Intel braces for massive layoff wave: 20,000 jobs at risk
Intel employees worldwide received some unfortunate news. According to Bloomberg, the IT industry giant is preparing for group layoffs, with 20% of the workforce expected to lose their jobs. At the end of 2024, the company employed just under 109,000 people, down from 124,800 the previous year.
On Thursday, Intel will present its financial results for the first quarter of 2025. Bloomberg sources suggest this will be an opportunity for the company's CEO, Lip-Bu Tan, to announce plans for further workforce reductions, potentially by 21%.
Last year, Intel laid off several thousand employees. If the agency's information is confirmed, the new wave of layoffs could affect over 20,000 employees. The goal is to improve management and "rebuild a culture based on engineering."
Bloomberg points out that the company, based in Santa Clara, California, missed the market's moment for developing artificial intelligence, leading to a loss of its technological advantage to Nvidia.
Last month at the Intel Vision conference, Lip-Bu Tan stated that the company needs to replace the lost engineering talent, improve its balance sheet, and better tailor its production processes to the needs of potential customers.
Pat Gelsinger, Intel's former CEO, admitted last year that the company lost its competitive spirit. He also expressed frustration with the speed at which it responded to the changing market.
Layoffs in the IT industry
"The pandemic created a boom in all kinds of services—streaming services, applications, large e-commerce, and solutions that serve large corporations. A correction has arrived, specifically its next, possibly fourth wave. A few years ago, programmers were in high demand, and there was a strong need for them. In my opinion, this trend is now reversing," assesses Maciej Motławski, owner of ITMakeovers in Bydgoszcz.
So, are we facing an employer's market? "One person who wanted to intern with us openly admitted that 50 companies refused them. If 50 companies refuse to accept someone even for unpaid internships, that probably indicates something," points out Motławski.
