Intel is set to cut more than 20% of its global workforce, equating to over 20,000 jobs, as part of a sweeping restructuring initiative under the helm of new CEO Lip-Bu Tan. This drastic measure comes amid mounting financial pressures and stiff competition in the semiconductor industry.
According to multiple sources, including Insider Monkey, Intel's decision follows a previous round of layoffs last year where it reduced its workforce by about 15,000 employees. This reduction lowered the company's employee count from approximately 124,800 to around 108,900. The current layoffs aim to address declining revenues and intensifying competition from rivals like AMD and Nvidia, who are advancing in chip manufacturing and AI development.
In an effort to enhance operational efficiency, the restructuring involves flattening Intel's leadership structure, enabling key chip divisions to report directly to the CEO. This strategic shift is designed to streamline operations, foster an engineering-focused culture, and concentrate on the firm's core strengths in advanced chip design and manufacturing, while scaling back on less profitable ventures. The layoffs will be officially announced this week alongside Intel's first-quarter financial results.
