Intel is reportedly preparing to cut more than 20% of its global workforce, according to a Bloomberg report citing sources familiar with the company's internal plans. The tech giant is expected to announce the restructuring this week as it looks to streamline operations and eliminate bureaucratic inefficiencies.
The reported move is said to be part of a broader shift toward an engineering-focused corporate culture, under the leadership of new CEO Lip-Bu Tan, who took over last month.
While Intel Ireland declined to comment on the Bloomberg article, describing it as “rumour and speculation”, Irish Government officials have confirmed that discussions are underway with the company to clarify the situation.
Intel employs approximately 4,900 people in Leixlip, Co Kildare, and about 300 in Shannon, Co Clare. The company previously announced it would shut down the Clare plant by Q3 2025.
Those reductions were driven by slowing revenues in the PC and data centre sectors, and the high cost of repositioning toward AI chip development, a space where Intel continues to lag behind competitors like Nvidia.
Intel ended 2024 with nearly 109,000 employees worldwide. The proposed cuts would be the first major move under CEO Lip-Bu Tan, who has already taken steps to flatten Intel’s management structure, with key divisions now reporting directly to him.
In a recent employee town hall, Mr Tan acknowledged that the company would need to make “tough decisions” to remain competitive, particularly in areas where it has lost market momentum.
Intel is scheduled to report its Q1 financial results tomorrow, which may shed further light on the restructuring plans. Government sources have indicated that no official comment will be made until Intel provides further details about the impact on Irish operations.
The reported move is said to be part of a broader shift toward an engineering-focused corporate culture, under the leadership of new CEO Lip-Bu Tan, who took over last month.
While Intel Ireland declined to comment on the Bloomberg article, describing it as “rumour and speculation”, Irish Government officials have confirmed that discussions are underway with the company to clarify the situation.
Engagement with Irish Government Ongoing
Enterprise and Employment Minister Peter Burke confirmed he is in direct contact with Intel regarding the potential layoffs. Meanwhile, Minister for Further and Higher Education, James Lawless emphasised that Intel’s Leixlip facility is well-positioned to adapt to any changes, given its strategic focus on advanced manufacturing, engineering, and chip design.He added that the company had invested €17 billion into expanding its Kildare campus in 2022, which remains ongoing.
Intel employs approximately 4,900 people in Leixlip, Co Kildare, and about 300 in Shannon, Co Clare. The company previously announced it would shut down the Clare plant by Q3 2025.
Background: Mounting Pressures and a Strategic Pivot
The latest reports follow a previous announcement in August 2024, when Intel said it would cut 15% of its workforce — around 15,000 jobs globally — as part of a $10 billion cost-saving initiative.Those reductions were driven by slowing revenues in the PC and data centre sectors, and the high cost of repositioning toward AI chip development, a space where Intel continues to lag behind competitors like Nvidia.
Intel ended 2024 with nearly 109,000 employees worldwide. The proposed cuts would be the first major move under CEO Lip-Bu Tan, who has already taken steps to flatten Intel’s management structure, with key divisions now reporting directly to him.
In a recent employee town hall, Mr Tan acknowledged that the company would need to make “tough decisions” to remain competitive, particularly in areas where it has lost market momentum.
Awaiting Confirmation
Intel is scheduled to report its Q1 financial results tomorrow, which may shed further light on the restructuring plans. Government sources have indicated that no official comment will be made until Intel provides further details about the impact on Irish operations.
