Intel to lay off over 20% of its workforce: Report
What's the story
Intel is planning to cut down its workforce by over 20% as part of a new strategy under CEO Lip-Bu Tan. The move, first reported by Bloomberg, is aimed at streamlining operations and cutting down bureaucratic inefficiencies. The layoffs are also part of a broader plan to refocus on an engineering-driven culture within the company.
Transition
Tan's leadership marks a new chapter for Intel
The expected layoffs will be the first major move under Tan's leadership, who took over last month. His appointment comes at a time when Intel is struggling and needs to be rejuvenated. Last month, Tan hinted at major changes to the firm's chip-making methods and artificial intelligence strategies. He stressed that "tough decisions" would have to be taken during his tenure.
Changes
Restructuring AI strategy and leadership
Tan is restructuring Intel's AI strategy and flattening its leadership team, with important chip groups now reporting directly to him. This follows a major workforce reduction last August, where Intel announced plans to slash 15% of its jobs or roughly 15,000 positions. The 2024 cuts were part of a $10 billion cost-reduction plan for this year, amid high costs and shrinking margins in Intel's core PC and data center segments.
Numbers
A look at Intel's workforce
As of the end of last year, Intel employed around 108,900 people. A timeline for the latest layoffs has not been disclosed. Also, the company will announce its first-quarter results tomorrow.