Key Takeaways
1. Intel plans to lay off over 20% of its workforce, about 20,000 employees, to simplify management and reduce red tape.
2. The new CEO, Lip-Bu Tan, aims to restore an engineering-focused culture and rejuvenate the company’s engineering talent.
3. The layoffs are expected to be announced alongside Intel’s first-quarter financial results on April 24.
4. Intel’s current employee count stands at approximately 108,900 after previous layoffs in August 2024.
5. The company faces challenges in maintaining market share against competitors like Nvidia and AMD, and its return to previous sales levels may take years.
Intel appears to be gearing up for a significant overhaul that might not bode well for its workforce. A recent report indicates that the company plans to let go of over 20% of its employees in an effort to simplify management and cut down on red tape. Changes have been underway at Intel ever since new CEO Lip-Bu Tan took the helm last month. The announcement regarding the layoffs is anticipated this week.
Rebuilding Engineering Culture
According to a Bloomberg report, which references a source privy to the situation, this bold strategy aims to restore an engineering-focused environment at Intel. This aligns with Tan’s view that the company must rejuvenate its engineering talent that has diminished over time. Tan believes Intel should modify its manufacturing techniques to better meet customer demands. This approach seemingly involves laying off more than 20% of the workforce, which translates to around 20,000 employees worldwide.
Current Employee Count
By the close of 2024, Intel was reported to have 108,900 employees, following a previous wave of layoffs in August 2024. The new round of job cuts is expected to be disclosed on Thursday, April 24, coinciding with the release of first-quarter financial results.
Market Challenges
Intel has been facing difficulties in maintaining its market share against rivals such as Nvidia and AMD. Tan was appointed to tackle these challenges, and according to the report, his strategy includes creating more attractive products by divesting non-essential assets. Additionally, analysts have suggested that Intel may struggle to return to its former sales heights. If it manages to do so, it might take many years to achieve that goal.
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