Intel Corporation is poised to announce plans this week to reduce its workforce by over 20%, marking a significant move under the leadership of newly appointed CEO Lip-Bu Tan. This decision comes as the company seeks to streamline operations and address ongoing challenges in the semiconductor industry.
The planned layoffs aim to eliminate bureaucratic inefficiencies and foster a more engineering-driven culture within Intel. Tan, who took over the helm last month, is steering the company towards revitalizing its core operations, particularly in the face of stiff competition from rivals like Nvidia and TSMC in the AI and chip manufacturing sectors.
This move follows a previous reduction in August 2024, where Intel announced a 15% cut in its workforce, equating to approximately 15,000 positions. The company had about 108,900 employees at the end of 2024. These strategic workforce reductions are part of a broader $10 billion cost-saving initiative aimed at offsetting high expenses and shrinking margins in Intel’s core PC and data center units.
Investors and industry analysts are closely watching Intel’s upcoming first-quarter financial results, expected to be released on Thursday, for further insights into Tan’s turnaround strategy and the company’s future direction.
