In the tech sector, job security has become an ethical dilemma where mass layoffs have shifted from a rare incident to a routine calculation. The latest example of this trend is Intel, which is reportedly planning to lay off  20% of its workforce. According to Bloomberg News, a person familiar with the matter informed the news agency that Intel layoffs are a part of a broader strategy to refocus on an engineering-driven culture.

This initiative aims to reduce bureaucratic inefficiencies and streamline operations. However, it depicts the fragile nature of job security, leaving employees vulnerable to corporate decisions that prioritize short-term financial gains over long-term workforce welfare.

Although Intel refrained from commenting on this issue, the company has a history of laying off workers in its cost-reduction plans. In October 2022, the company planned ‘people actions’ aimed at reducing the headcount from 131,900 to 124,800 by the end of 2023. In August 2024, the company also planned to cut 15% of its jobs. 

Intel’s Restructuring Under Tan 

This lay-off will be the first one after Lip-Bu Tan took office as Intel’s CEO. Recently, the CEO restructured the company’s leadership with its networking chip chief, Sachin Katti, who was promoted to chief technology officer and artificial intelligence chief. In addition to this promotion, Intel’s data centre and AI chip group, along with the personal-computer chip group, were notified to report directly to Tan. About this shift, Tan stated 

“I want to roll up my sleeves with the engineering and product teams so I can learn what’s needed to strengthen our solutions.”

Tan is looking for a new strategy to address the emerging demands and challenges of the AI domain. He has also been reported to relate staff cuts to a slow-moving and loathed middle management layer. The CEO is also found saying the company needs to make ‘tough decisions’.