Intel Corporation has officially begun a wave of layoffs that were first hinted at two months ago by CEO Lip-Bu Tan, signalling the start of a sweeping overhaul at the struggling semiconductor giant. The move marks one of Tan’s first major structural actions since taking the reins earlier this year, and is in line with his stated aim to "become a leaner, faster and more efficient company."

According to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state of California, Intel plans to lay off 107 employees connected to its headquarters in Santa Clara. The notice, dated last Wednesday, meets the WARN Act’s requirement for public notification when 50 or more employees are dismissed within a 30-day period at any one site in California.

The roles affected by the layoffs were not officially detailed in the notice. However, reports cited by CRN suggest that this round is likely connected to a broader restructuring of Intel’s chip manufacturing division, where up to 15 to 20 percent of employees could ultimately be impacted. These figures are based on an internal memo that emerged last week, outlining a deeper workforce realignment inside Intel’s core business segments.

In a statement issued to CRN, an Intel spokesperson confirmed the layoffs and reiterated the company’s focus on simplification and execution:

“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company. Removing organisational complexity and empowering our engineers will enable us to better serve the needs of our customers and strengthen our execution.”

The spokesperson added that the company has been carefully reviewing its operations to determine where changes are necessary to strengthen its competitive edge in a highly volatile global market. “We are making these decisions based on careful consideration of what’s needed to position our business for the future, and we will treat people with care and respect as we complete this important work,” the statement said.

This restructuring effort is part of Intel’s broader plan to cut operating expenses by $500 million in 2025 and an additional $1 billion in 2026, which Tan revealed in a company-wide memo in late April. At the time, the CEO acknowledged that the transformation would lead to job losses, writing candidly to employees: “There is no way around the fact that these critical changes will reduce the size of our workforce.”

Intel has not released a full list of impacted roles, but the affected positions are believed to span engineering support, operational planning, and chip production roles. Analysts expect Intel to consolidate certain functions and shift more resources towards next-generation semiconductor technologies, particularly in areas like AI acceleration, server-grade chipsets, and specialised hardware for data centres.

For the employees affected, the coming weeks will bring uncertainty. For Intel, however, this moment represents a first — and possibly defining — step in a long-term turnaround that could reshape one of America’s most storied tech brands.