At the close of 2024, Intel employed 108,900 individuals. Currently, the chipmaking giant is preparing to reduce its workforce by over 33,000 positions, aiming for a total of 75,000 employees by year-end.

Intel CEO Lip-Bu Tan, aged 65, informed staff in a memo on Thursday that the company is executing a plan to decrease its workforce by 15%. The layoffs are an addition to the roughly 21,000 positions (about 20% of Intel’s workforce) that were eliminated between April and June, primarily focusing on reducing layers of middle management.

Intel previously announced in August that it was laying off 15% of its workforce, or over 15,000 employees, last year.

In the second-quarter earnings report released on Thursday, Intel disclosed a sixth consecutive quarterly loss of $2.9 billion, nearly doubling its $1.6 billion loss from the same time the previous year. The increased loss can be mainly attributed to restructuring costs of $1.9 billion associated with job cuts.

Tan stated in a conference call 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.

“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.”

^{Intel CEO Lip-Bu Tan. Photographer: Annabelle Chih/Bloomberg via Getty Images}

Tan, who was previously CEO of chip software company Cadence Design Systems from 2009 to 2021, is now tasked with turning Intel around after three years of declining revenue. He became Intel’s CEO on March 18, replacing former CEO Pat Gelsinger.

Intel faces competition from rival companies like Nvidia, 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.

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.

Intel stock was down over 7% this past month, but up nearly 2% year-to-date.

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