Intel announced that it will close the year with a less workforce.

It is predicted that more than 20% smaller than in 2024, as part of a sweeping transformation led by newly appointed CEO Lip Bu Tan.

This plan is part of Tan’s aggressive strategy to streamline the chipmaker and restore its competitiveness after years of underperformance and strategic missteps.

Tan took charge of the company in March. He has implemented deep cost-cutting measures, including major layoffs, most of which have already been carried out business divestitures, and a shift in resource allocation.

This restructuring signals a new era of financial discipline at Intel, with Tan vowing to end what he described as a culture of “blank checks.”

Tan while addressing his employees said that there are no blank checks left. Every investment made in future will be economic friendly.

He further said we would focus on what our customers need, when they need it, and will earn their trust through consistent execution.

In recent years, Intel has struggled and have fall behind competitors in market. Though it holds little credit for expanding AI chip sector dominated by Nvidia.

While, AMD continues to erode Intel’s market share in both the personal computing and server segments.

In addition, Intel’s high-cost plan to develop a contract based chip manufacturing business to rival Taiwan’s TSMC has yet to gain traction.

Tan’s message on Thursday made clear that the company is entering a new phase focused on accountability, execution, and regaining lost ground in an increasingly competitive semiconductor landscape.