Intel is set to cut approximately 20% of its workforce, impacting one in five employees. This decision is anticipated to be disclosed this week coinciding with the announcement of its latest financial figures. This strategy is aimed at streamlining operations and enhancing its engineering focus.

Previously, Intel had announced a 15% workforce reduction in August 2024, which resulted in around 17,500 job losses. With these new layoffs, the overall number of employees let go could reach a staggering one-third since last August, potentially dropping Intel’s staff numbers from about 100,000 to around 80,000, down from a peak of 131,000 in 2022.

In comparison, AMD boasts a workforce of approximately 30,000 and Nvidia around 35,000. Despite these cuts, Intel will still constitute a large operation due to its extensive chip design and production capacities.

This move comes shortly after Lip-Bu Tan took over as CEO, following the prior CEO, Pat Gelsinger, who also emphasized a return to an engineering-first ethos. Last month, Tan noted the need to ‘correct past mistakes’ and realign Intel’s focus on engineering excellence.

With a significant reduction in workforce ahead, this transition phase may bring challenges before recovery and stabilization can be achieved.