Intel to announce plans this week to cut more than 20% of staff
Sign up now: Get ST's newsletters delivered to your inbox
The layoffs would be the first major restructuring under new CEO Tan Lip-Bu, who took the helm in March.
PHOTO: REUTERS
Follow topic:
TAIPEI – Intel is poised to announce plans this week to cut more than 20 per cent of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter.
The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private.
It would be the first major restructuring under new chief executive officer Tan Lip-Bu
The cutbacks follow an effort in 2024 to slash about 15,000 jobs – a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.
A representative for Intel declined to comment.
Mr Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals.
The US chip giant lost its technological edge and has struggled to catch up with Nvidia in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink.
Mr Tan, a veteran of Cadence Design Systems, has vowed to spin off Intel assets that are not central to its mission and create more compelling products. Last week, the company agreed to sell a 51 per cent stake in its programmable chips unit Altera to Silver Lake Management, a step towards that goal.
Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Mr Tan said in March at the Intel Vision conference.
The company is scheduled to report its first-quarter results on April 24. BLOOMBERG
