"In a notable shift from past practice, Intel also said it would not offer early retirements this time, describing previous rounds of early exits as a misstep that cost the company valuable experience."
PG just could not stop making wrong decisions. I always felt his judgements were clouded by some other things (religion, politics, past Intel experience etc.).
Intel employees hoping for clarity on looming job cuts were met with more questions than answers on Friday, as senior executives downplayed earlier reports of massive layoffs but declined to provide specific numbers or timelines.
During an all-hands video conference, Chief Financial Officer David Zinsner told staff that a Bloomberg report suggesting Intel would lay off more than 20,000 workers was inaccurate. The company has not yet finalized how many positions will be eliminated, he said.
Each department will now assess its own structure, executives explained, with some employees potentially offered voluntary buyouts. However, they cautioned that not all requests to leave would be accepted. In a notable shift from past practice, Intel also said it would not offer early retirements this time, describing previous rounds of early exits as a misstep that cost the company valuable experience.
The latest developments cap a tense week inside the struggling semiconductor giant. On Thursday, CEO Lip-Bu Tan had outlined a sweeping transformation plan in a 1,200-word internal letter, calling for deep structural and cultural changes to restore Intel’s competitiveness. However, the memo left employees largely in the dark about who would be affected by upcoming cuts.
“These critical changes will reduce the size of our workforce,” Tan wrote, without specifying numbers. He promised that layoffs would begin in the second quarter and proceed “as quickly as possible over the next several months.”
Friday’s company-wide call did little to fill in the gaps. Tan and Zinsner reiterated the need to restructure but gave no detailed breakdown of where reductions would occur or which business units might be most exposed.
Intel currently employs around 109,000 people worldwide. Bloomberg had reported earlier this week that as many as 20% of them—over 20,000 workers—could lose their jobs, making it the largest round of layoffs in the company’s history.
While Tan emphasized his desire to rebuild Intel’s engineering ranks and even hinted at trying to lure back talent that left, he offered no concrete details on how he plans to do so.
Intel's recent moves reflect a broader effort to control costs amid persistent headwinds. Tan has committed to reducing operating expenses to $17 billion in 2025 and $16 billion in 2026, alongside trimming capital expenditures by $2 billion this year.
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Meanwhile, the company has already made visible cuts to employee perks over the past year, such as scaling back transportation benefits and complimentary services. In November, Intel reinstated car benefits with modifications after employee backlash and restored free coffee and tea in its Israel offices.
Tan, who stepped into the CEO role five weeks ago, has positioned his leadership as a return to Intel’s engineering roots, promising a more agile and less bureaucratic organization. "We need to get back to our roots and empower our engineers," he wrote in Thursday's letter, citing a corporate culture that had become “too slow, too complex and too set in our ways.”
Still, for thousands of Intel workers worldwide, uncertainty looms large. While executives have rejected the headline-grabbing 20,000 layoff figure, they have confirmed that major cuts are coming—just not how deep, where, or when.
“We must balance our reductions with the need to retain and recruit key talent,” Tan wrote, acknowledging the delicate line Intel must walk as it tries to cut costs without weakening its core technical capabilities.
www.calcalistech.com
PG just could not stop making wrong decisions. I always felt his judgements were clouded by some other things (religion, politics, past Intel experience etc.).
Intel says upcoming layoffs will be less than 20,000—but early retirement won’t be an option
Intel employees hoping for clarity on looming job cuts were met with more questions than answers on Friday, as senior executives downplayed earlier reports of massive layoffs but declined to provide specific numbers or timelines.
During an all-hands video conference, Chief Financial Officer David Zinsner told staff that a Bloomberg report suggesting Intel would lay off more than 20,000 workers was inaccurate. The company has not yet finalized how many positions will be eliminated, he said.
Each department will now assess its own structure, executives explained, with some employees potentially offered voluntary buyouts. However, they cautioned that not all requests to leave would be accepted. In a notable shift from past practice, Intel also said it would not offer early retirements this time, describing previous rounds of early exits as a misstep that cost the company valuable experience.
The latest developments cap a tense week inside the struggling semiconductor giant. On Thursday, CEO Lip-Bu Tan had outlined a sweeping transformation plan in a 1,200-word internal letter, calling for deep structural and cultural changes to restore Intel’s competitiveness. However, the memo left employees largely in the dark about who would be affected by upcoming cuts.
“These critical changes will reduce the size of our workforce,” Tan wrote, without specifying numbers. He promised that layoffs would begin in the second quarter and proceed “as quickly as possible over the next several months.”
Friday’s company-wide call did little to fill in the gaps. Tan and Zinsner reiterated the need to restructure but gave no detailed breakdown of where reductions would occur or which business units might be most exposed.
Intel currently employs around 109,000 people worldwide. Bloomberg had reported earlier this week that as many as 20% of them—over 20,000 workers—could lose their jobs, making it the largest round of layoffs in the company’s history.
While Tan emphasized his desire to rebuild Intel’s engineering ranks and even hinted at trying to lure back talent that left, he offered no concrete details on how he plans to do so.
Intel's recent moves reflect a broader effort to control costs amid persistent headwinds. Tan has committed to reducing operating expenses to $17 billion in 2025 and $16 billion in 2026, alongside trimming capital expenditures by $2 billion this year.
Related articles:
Meanwhile, the company has already made visible cuts to employee perks over the past year, such as scaling back transportation benefits and complimentary services. In November, Intel reinstated car benefits with modifications after employee backlash and restored free coffee and tea in its Israel offices.
Tan, who stepped into the CEO role five weeks ago, has positioned his leadership as a return to Intel’s engineering roots, promising a more agile and less bureaucratic organization. "We need to get back to our roots and empower our engineers," he wrote in Thursday's letter, citing a corporate culture that had become “too slow, too complex and too set in our ways.”
Still, for thousands of Intel workers worldwide, uncertainty looms large. While executives have rejected the headline-grabbing 20,000 layoff figure, they have confirmed that major cuts are coming—just not how deep, where, or when.
“We must balance our reductions with the need to retain and recruit key talent,” Tan wrote, acknowledging the delicate line Intel must walk as it tries to cut costs without weakening its core technical capabilities.
Intel says upcoming layoffs will be less than 20,000—but early retirement won’t be an option | CTech
Restructuring to rely on buyouts and department-by-department reviews.
www.calcalistech.com
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