Intel is reportedly on the verge of announcing layoffs that will cut more than 20 percent of staff in the chipmaker’s first major move under its new CEO, Lip-Bu Tan.
The company’s cutback is an attempt to slash bureaucracy, streamline management, and rebuild an engineering-driven culture at Intel, one person with knowledge of the situation told Bloomberg.
Tan — who took over as Intel’s Chief Executive Officer after the company’s former CEO, Pat Gelsinger, was ousted last year — is hoping to guide the chipmaker into making a comeback after its dominance in the industry has waned over the years.
Intel — which now finds itself fighting to catch up Nvidia in AI computing — is working on replacing the engineers the company lost, refining its balance sheet, and better integrating its manufacturing processes, Tan noted at the Intel Vision conference last month.
In the meantime, Tan is reportedly seeking to offload non-essential assets and focus on creating more captivating products. In an attempt to reach that goal, the company recently agreed to sell a 51 percent stake in its programmable chips unit Altera to Silver Lake Management.
The Intel CEO may offer more information on what he plans to do during the company’s first-quarter results report on Thursday, Bloomberg noted.
But analysts reportedly surmise it will take years for the company to return to its previous sales — and that there is even a chance it may never happen at all. On a more positive note, Wall Street has estimated that the worst of Intel’s revenue drops are now over.
Intel’s reported upcoming employee cutbacks follow a sweeping $10 billion cost savings plan in August that included slashing over 15,000 jobs — approximately 15 percent of its global workforce.
Shares of Intel rose more than 5.5 percent on Wednesday.
Alana Mastrangelo is a reporter for Breitbart News. You can follow her on Facebook and X at @ARmastrangelo, and on Instagram.
