(Reuters) -Intel is about to unveil plans this week to slash greater than 20% of its workforce, in a transfer to streamline operations and cut back bureaucratic inefficiencies, Bloomberg Information reported on Tuesday, citing an individual aware of the matter.
The layoffs are a part of a broader technique to refocus on an engineering-driven tradition, the report mentioned.
Intel didn’t instantly reply to a Reuters request for remark.
The layoffs mark the primary main transfer underneath new CEO Lip-Bu Tan, who took over final month to revive the struggling Silicon Valley chipmaker after years of challenges.
Final month, Reuters reported that Tan was contemplating vital adjustments to its chip manufacturing strategies and synthetic intelligence methods.
The brand new trajectory concerned restructuring Intel’s AI technique and implementing workers cuts to deal with what Tan described as a slow-moving and bloated center administration layer. Shortly after his appointment, he instructed staff in a city corridor that the corporate must make “powerful choices.”
Final week, Reuters reported that Tan was restructuring the corporate by flattening its management workforce, with key chip teams now reporting on to him.
The deliberate layoffs observe a big discount in workforce final August, when Intel mentioned it deliberate to chop 15% of its jobs, or roughly 15,000 positions.
The job cuts in 2024, a part of a $10 billion cost-reduction plan aimed for this 12 months, have been pushed by excessive prices, shrinking margins in Intel’s core PC and knowledge middle segments, and an costly pivot to AI chips – an space the place Intel has trailed rivals equivalent to Nvidia.
The Santa Clara, California-based firm had 108,900 staff on the finish of 2024, based on a submitting.
The chipmaker is scheduled to report its first-quarter outcomes on Thursday.
(Reporting by Bipasha Dey in Bengaluru; Enhancing by Sherry Jacob-Phillips and Alan Barona)
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