Chip giant Intel is reportedly preparing to implement a significant reduction in its workforce, with plans to cut approximately 20 percent of its staff. This information, sourced from Bloomberg, suggests that the primary goal behind these layoffs is to streamline operations and reduce bureaucracy within the organization. This announcement follows a previous round of job cuts that eliminated 15,000 positions, indicating a broader trend of workforce reduction at the company.
While Intel has confirmed that job cuts are on the horizon, the exact number of affected employees has not been disclosed. The layoffs are expected to commence in the second quarter of the year.
Leadership Vision
New CEO Lip-Bu Tan has articulated a vision aimed at revitalizing the company’s engineering functions. In a recent statement, he emphasized the importance of returning to the company’s foundational strengths and empowering engineers to drive innovation. “We need to get back to our roots and empower our engineers,” Tan remarked. He further noted that elevating core engineering functions to the executive team is a strategic move designed to enhance productivity by eliminating cumbersome workflows and processes that hinder the pace of innovation.
Tan also highlighted the necessity of making strategic investments in engineering talent and technology roadmaps. To achieve this, he acknowledged the need for cost reductions, stating, “While we have taken significant actions in the last year, our current cost structure is still well above competitive benchmarks.” As part of this initiative, Intel has revised its operating expense and capital spending targets, which will be elaborated upon during an investor call scheduled for later today.
