At the end of 2024, Intel had 108,900 employees<\/a>. Now the chipmaking giant is planning to cut over 33,000 jobs to cut the workforce to 75,000 employees by the end of the year.<\/p>\n Intel CEO Lip-Bu Tan, 65, said in a memo to staff<\/a> on Thursday that Intel is implementing a plan to reduce its workforce by 15%. <\/b>The layoffs are in addition to the approximately 21,000 roles (about 20% of Intel’s workforce<\/a>) the company let go from April to June, which mainly focused on cutting down layers of middle management.<\/p>\n Intel previously announced in August that it was laying off 15% of its workforce<\/a>, or over 15,000 employees, last year.<\/p>\n Related:<\/b> Intel Requires Employees to Work From the Office More Often: ‘This Action Is Necessary’<\/a><\/p>\n In its second-quarter earnings report<\/a> released on Thursday, Intel reported a sixth consecutive quarterly loss of $2.9 billion, nearly double its $1.6 billion loss at the same time a year earlier. The increased loss was mainly due to restructuring costs<\/a> of $1.9 billion due to job cuts.<\/p>\n Tan stated in a conference call<\/a> with analysts and investors following the report that over the past three months, he had completed “a systematic review” of Intel’s headcount and spending.<\/p>\n “Our goal is to reduce inefficiencies and redundancies and increase accountability at every level of the company,” Tan stated on the call. “We need to right-size and scale back the company.”<\/p>\n Tan, who was previously CEO of chip software company Cadence Design Systems from 2009 to 2021<\/a>, is now tasked with turning Intel around after three years<\/a> of declining revenue. He became<\/a> Intel’s CEO on March 18, replacing former CEO Pat Gelsinger<\/a>.<\/p>\n Intel faces competition from rival companies like Nvidia<\/a>, which captured a greater share of the AI chip market. Nvidia had between 70% and 95% of the market share for AI chips last year, compared to Intel’s less than 1%, per CNBC<\/i><\/a>.<\/p>\n Related: <\/b>How Nvidia CEO Jensen Huang Transformed a Graphics Card Company Into an AI Giant: ‘One of the Most Remarkable Business Pivots in History’<\/a><\/p>\n However, Intel is trying to catch up. The company plans to launch more efficient chips later this year to better compete with Nvidia and other rivals, per The Wall Street Journal<\/i><\/a>.<\/p>\n Intel stock<\/a> was down over 7% this past month, but up nearly 2% year-to-date.<\/p>\n Join top CEOs, founders and operators at the<\/i> <\/i>Level Up conference<\/i><\/a> to unlock strategies for scaling your business, boosting revenue and building sustainable success.<\/i><\/sup><\/p>\n<\/div>\n At the end of 2024, Intel had 108,900 employees<\/a>. Now the chipmaking giant is planning to cut over 33,000 jobs to cut the workforce to 75,000 employees by the end of the year.<\/p>\n Intel CEO Lip-Bu Tan, 65, said in a memo to staff<\/a> on Thursday that Intel is implementing a plan to reduce its workforce by 15%. <\/b>The layoffs are in addition to the approximately 21,000 roles (about 20% of Intel’s workforce<\/a>) the company let go from April to June, which mainly focused on cutting down layers of middle management.<\/p>\n Intel previously announced in August that it was laying off 15% of its workforce<\/a>, or over 15,000 employees, last year.<\/p>\n<\/div>\n![\"\"](\"https:\/\/assets.entrepreneur.com\/images\/misc\/1753462235_Lip-Bu-Tan-GettyImages-2215354254.jpg?width=1000\")
Intel CEO Lip-Bu Tan. Photographer: Annabelle Chih\/Bloomberg via Getty Images<\/i><\/sup><\/p>\n