Intel is set to cut more than 20 percent of its workforce as part of a plan to streamline operations and reduce bureaucratic inefficiencies, according to Bloomberg News. The layoffs are part of an effort to return to an engineering-driven culture. Intel has not commented on the report.
This move is the first major initiative by new CEO Lip-Bu Tan, who took the helm last month with a mandate to revitalize the struggling chipmaker. Under Tan’s leadership, Intel is reportedly rethinking its chip manufacturing approach and artificial intelligence strategies. He has been candid about the need for “tough decisions” and is restructuring the company by flattening its leadership structure. Key chip divisions now report directly to him.
The upcoming cuts follow an earlier reduction in August, when Intel announced it would eliminate about 15,000 jobs, or 15 percent of its workforce. These latest layoffs are part of a $10 billion cost-cutting effort in 2024. The company is grappling with high costs, tightening margins in its core PC and data center businesses, and an expensive push into AI chips, an area where it has lagged behind competitors like Nvidia.
Intel, based in Santa Clara, California, reported having 108,900 employees at the end of 2024. The company is expected to release its first-quarter earnings on Thursday.
TelecomLead.com News Desk