A substantial lay off of employees is set to occur at Intel. The California-based technology company reportedly will slash more than 20% of its workforce.
Why are the Intel layoffs happening?
What we know:
The company’s layoffs are part of a larger strategy to refocus on an engineering-driven culture, Reuters reported, citing Bloomberg.
This latest set of layoffs comes after a reduction in staff in August 2024. Intel told Reuters that it would cut 15% of its workforce to revamp a strategy of former CEO Pat Gelsinger, who had a goal to restore Intel’s lead in manufacturing chips.
What we don’t know:
Intel has not announced when the layoffs will happen at which departments are being impacted.
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Intel’s new CEO Lip-Bu Tan made the move to resurrect the organization after it faced internal struggles and management issues.
Reuters reported in March that Tan would overhaul Intel’s manufacturing and AI operations after the firm lost its lead in chipmaking and couldn’t capitalize on a growing demand for AI processors.
Intel’s new CEO Lip-Bu Tan made the move to resurrect the organization after it faced internal struggles and management issues.
Reuters reported in March that Tan would overhaul Intel’s manufacturing and AI operations after the firm lost its lead in chipmaking and couldn’t capitalize on a growing demand for AI processors.
Intel is set to release its first-quarter results on April 24, offering a look at Tan’s turnaround strategy, which may encounter problems with a potential trade war between the U.S. and China and the threat of tariffs.
The Source: Information for this story was provided by Reuters and Bloomberg. This story was reported from Washington, D.C.
