Intel CEO Lip-Bu Tan warned in April that the quest for efficiency would be accompanied by painful job losses. The semiconductor company had previously disclosed its intentions to cut 20% of its global workforce, which would equate to 21,000 workers worldwide.

Intel has begun laying off thousands of employees in the US and Israel as part of a major AI restructuring push. CEO Lip-Bu Tan admitted the company can no longer compete in high-end AI hardware and will now focus on local and edge AI.

Intel plans to lay off over 5,500 employees across the US, with teams in California and Oregon set to see the most job cuts. This decision comes as Intel lags in the CPU and AI GPU markets, and effects can be seen in the company's market value.