Intel is poised to announce plans this week to chop greater than 20% of its workers, aiming to remove paperwork on the struggling chip maker, in line with an individual with data of the matter.
The transfer is a part of a bid to streamline administration and rebuild an engineering-driven tradition, in line with the particular person, who requested to not be recognized as a result of the plans are non-public. It might be the primary main restructuring underneath new CEO Lip-Bu Tan, who took the helm final month.
The cutbacks comply with an effort final yr to slash about 15 000 jobs — a spherical of layoffs introduced in August. Intel had 108 900 workers on the finish of 2024, down from 124 800 the earlier yr.
A consultant for Intel declined to remark.
Tan is aiming to show across the iconic chip maker after years of Intel ceding floor to rivals. The Santa Clara, California-based firm misplaced its technological edge and has struggled to catch as much as Nvidia in synthetic intelligence computing. That contributed to a few straight years of gross sales declines and mounting crimson ink.
Tan, a veteran of Cadence Design Programs, has vowed to spin off Intel property that aren’t central to its mission and create extra compelling merchandise. Final week, the corporate agreed to promote a 51% stake in its programmable chips unit Altera to Silver Lake Administration, a step in direction of that purpose.
Outcomes
Intel wants to exchange the engineering expertise it has misplaced, enhance its stability sheet and higher attune manufacturing processes to the wants of potential prospects, Tan stated final month on the Intel Imaginative and prescient convention.
Learn: Intel to promote Altera stake for $4.5-billion
The corporate is scheduled to report its first-quarter outcomes on Thursday. — Jane Lanhee Lee and Ian King, (c) 2025 Bloomberg LP
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