‘Tough decisions’: Intel targets middle management cuts as Lip-Bu Tan reshapes AI, manufacturing

What’s happening at Intel?

Intel is preparing another wave of staff reductions under new CEO Lip-Bu Tan, according to sources familiar with his plans. The move is part of a broader effort to streamline operations and retool the company’s AI and chip manufacturing strategy.

• Tan officially returns to Intel this week after previously serving on its board.
• His priority: reduce middle management layers that he believes slow decision-making and innovation.
• This follows Intel’s 2024 reduction of roughly 15,000 employees, leaving its workforce at around 109,000.

Why It Matters: Intel is facing mounting pressure to recover after years of strategic missteps and heavy losses. In 2024, the company posted a $19 billion annual loss—the worst since 1986.

• Tan has been described by insiders as a decisive leader, in contrast to former CEO Pat Gelsinger, who some suggested was “too nice” and was criticized for failing to take tougher actions on staffing.
• Intel’s future hinges on regaining ground in AI processors and competing with foundry giants like TSMC.

The Big Picture: Tan’s return signals an acceleration of Intel’s efforts to reestablish itself as a leader in semiconductor manufacturing, both for its own products and as a contract foundry for other major tech firms.

• Intel’s manufacturing arm, Intel Foundry, is key to the strategy, with efforts underway to win customers like Nvidia and Broadcom.
• Tan aims to improve output efficiency and chip quality using Intel’s advanced 18A process, which underpins its next-generation Panther Lake AI chips.

What They’re Saying: At a recent town hall, Tan told employees the company will need to make “tough decisions” as it reorganizes.

• “Lip-Bu will be spending a lot of time listening to customers, partners and employees as he comes on board and works closely with our leadership team to position the business for future success,” Intel said in a prepared statement.
• Tan’s internal reviews reportedly emphasized frustrations with Intel’s culture and decision-making speed, calling for a return to the “only the paranoid survive” ethos of former CEO Andy Grove.

What’s Next: Tan is expected to evaluate Intel’s workforce closely in the coming weeks.

• Industry analysts say success will depend on Intel’s ability to attract at least two major external clients to its foundry business.
• The company’s Panther Lake AI chips, set to launch later this year, are seen as critical to turning around Intel’s financial outlook.

Impact on Canadian staff

Samfiru Tumarkin LLP is working to determine if any Canadian employees at Intel will be let go.

Next steps for Intel employees

If you’re fired or let go from Intel, understanding your legal rights is crucial.

Non-unionized employees in Canada are entitled to severance pay. The amount you’re owed is based on a variety of factors, including your role, tenure, age, and ability to find similar work.

WATCH: Employment lawyer Lior Samfiru delves into severance pay on an episode of the Employment Law Show.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Don’t sign any severance offer or termination papers until you contact our team to discover your rights. Read our blog on severance offers and deadline extensions to learn more.

Major employers slashing staff

Reports of a workforce reduction at Intel come amid a flurry of job cuts in 2025.

Other big names, including MLSE, Disney, Town of Cochrane, Autodesk, Mohawk College, JPMorgan, Chevron, Vale, Meta, Canada Post, Workday, ADM, Amazon, Shopify,  Stripe, BP, Microsoft, Hudson’s Bay, and Wayfair, have pulled out the axe as they navigate challenging economic conditions.

SEE ALSO
• ‘We lost our agility’: Estée Lauder planning to slash up to 7,000 jobs
• Canada’s immigration department slashing workforce by 25%
• Where are layoffs happening in Canada?

Lost your job? Contact us

If you’re fired or let go from Intel for any reason, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.