Intel Cuts Jobs as AI Takes Over Marketing

Date published
June 21, 2025

Intel is offloading much of its marketing team to consulting giant Accenture as part of a broad restructuring led by new CEO Lip-Bu Tan. The company is betting that AI-powered services from Accenture can connect with customers more effectively than its in-house team.

Internal memos confirm Intel plans to notify most affected marketing staff by July 11. While the exact number of layoffs is unknown, the company has acknowledged that only lean teams will remain once the transition is complete.

This marks a major shift in strategy under Tan, a longtime chip industry leader but the first Intel CEO without previous ties to the company. Since joining in March, he has moved quickly to streamline operations, eliminate management layers, and cut costs. Earlier this month, Intel also announced plans to lay off up to 20 percent of its manufacturing workforce starting in July.

image

The company says this new marketing model is about more than just cutting costs. In internal communications, Intel cited feedback that its go-to-market efforts were too slow and complicated, falling behind faster competitors.

“We need to change our model to be more responsive to what customers want,” the company told employees. Intel believes artificial intelligence can simplify processes, improve decision-making, and personalize customer interactions.

The use of contractors to handle core corporate functions raises questions about the future of traditional marketing roles inside tech giants. Employees have also been told they may need to assist in training their replacements during the transition.

Intel, like many legacy tech firms, is under pressure. The company has lost ground in key markets, including personal computing and data centers, and it has yet to break through in the AI space. Sales have dropped by one third in recent years, leading to mounting losses and an uncertain future.

Tan’s approach signals a hard reset. By partnering with Accenture and leaning heavily on AI, Intel is placing a high-stakes bet that automation and third-party firms can help it become more agile and competitive.

The impact of this strategy will be closely watched, not just at Intel, but across an industry where AI continues to reshape how companies work.