Intel Corporation is reportedly planning to reduce its global workforce by more than 20%, according to a Bloomberg News report. This move is a part of a significant restructuring effort under the leadership of new CEO Lip-Bu Tan, who is focused on streamlining management, cutting bureaucracy, and revitalising an engineering-focused culture at the struggling chipmaker.
The layoffs that are expected to affect thousands of employees worldwide are part of Intel’s strategy to reduce costs and simplify its operations. The company has been dealing with declining revenues, heightened competition from companies like AMD and Nvidia, and challenges in maintaining its position as a leader in chip manufacturing. This latest round of layoffs follows last year’s reduction of 15,000 jobs, leaving Intel with 108,900 employees at the end of 2024, down from 124,800 the previous year.
The company focuses on its fundamental business sectors, which include advanced chip design and manufacturing under Tan’s leadership, while removing non-profitable operations from their operations. Intel pursues this restructuring to attain progress-oriented business expansion throughout an aggressive market environment. Tan appeared at his first CEO conference, where he emphasized both the firm’s major challenges and his belief that success was possible through hard work despite the time required.
Intel faces its problems mainly because of its unsuccessful market evolution, which has not kept pace with the fast-growing AI industry. The semiconductor industry leader Nvidia, obtained worldwide status as the most valuable by surpassing Intel because the company spurned vital aspects of AI development alongside state-of-the-art chip fabrication. Intel Company has suspended multiple key development initiatives, which were projected to establish the Ohio factory as the world’s biggest semiconductor center. Thursday marks the date when Intel will report its first-quarter financial results that could shed light on Tan’s restructuring strategy, as per media reports.
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