2 weeks Ago
SANTA CLARA (US), April 23 — Intel Corporation is reportedly preparing to cut more than 20 per cent of its workforce this week in a major restructuring effort aimed at eliminating bureaucracy and restoring its engineering-driven culture. Citing a source with knowledge of the plans, Bloomberg reported today that the initiative marks the first significant shake-up under new Chief Executive Officer Lip-Bu Tan, who assumed the role just last month. These upcoming cuts follow last year’s round of layoffs, which saw Intel eliminate about 15,000 jobs, bringing its headcount down to 108,900 at the end of 2024 from 124,800 the year before.
Intel has reportedly declined to comment on the reported plans. According to the report, Tan is aiming to turn around the company after years of ceding ground to rivals, particularly in artificial intelligence computing, which contributed to three consecutive years of sales declines and growing losses. Tan has also reportedly pledged to spin off non-core assets and create more compelling products; last week, Intel agreed to sell a 51 per cent stake in its programmable chips unit, Altera, to Silver Lake Management.
Tan is expected to provide more details when Intel announces its first-quarter results tomorrow, though analysts do not expect the company to return to its previous sales levels for years, if ever. Tan’s predecessor, Pat Gelsinger, was removed after struggling to implement his own turnaround plan, which included an ambitious but costly expansion of Intel’s factory network and efforts to transform the company into a made-to-order chip manufacturer..
