Intel Corp is ready to announce plans this week to reduce more than 20 percent of its staff, with the aim of eliminating bureaucracy in the chips manufacturer in difficulties, according to a person with knowledge of the matter.
The measure is part of an offer to rationalize management and rebuke a culture driven by engineering, according to the person, which asked not to be identified, the plans are private. It would be the first important restructuring under the new executive director Lip-Bu Bu Tan, who took the helmet last month.
The cuts follow an effort last year to reduce about 15,000 jobs, a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, below 124,800 the previous year.
An Intel representative declined to comment.
The objective of the iconic chips manufacturer is around after years of intel cedion land to the rivals. The company based in Santa Clara, California, lost its technological advantage and has struggled to catch up with Nvidia Corp in artificial intelligence computer science. That contributed to three consecutive years of sales and increasing red ink decreases.
So, a veteran of Cadence Design Systems Inc, has promised to split Intel assets that are not central to their mission and create more convincing products. Last week, the company agreed to sell a 51 percent participation in its Ble Chips Unit program alters Silver Lake Management, a step towards that goal.
Intel needs to replace the engineering talent that he has lost, improve his balance sheet and better manufacturing processes tune in with the needs of potential customers, he said so last month at the Intel Vision conference.
The company plans to inform the results of the first quarter on Thursday, giving so the opportunity to establish more of its strategy. He thought that the sausage of the decrease in Intel’s income is now behind this, according to Wall Street estimates, analysts are not projecting a return to their previous sales levels for years, if ever.
The 65 -year -old executive was hired after last year’s expulsion or the CEO Pat Gelsinger, who fought to execute his own Oray sound by Intel. He had embarked on an expensive effort to expand the company’s factory network and tried to turn Intel into a chips manufacturer made of order.
But Intel has now delayed much of its expansion effort, including plans for an Ohio installation that was once expected to become the world’s largest chips production center. Intel had also been ready to be the biggest money company beneficiary of the Science and Sciences Law of 2022, but that program is now in flow under President Donald Trump.
A manufacturing association with Taiwan semiconductor manufacturing co – The source of speculation of investors in recent months, also seems less likely to happen. The CEO of TSMC, CC Wei, said last week that the company would focus on its own business.
Along the way, Intel lost the new most lucrative field for the chip industry in decades. The company, which dominated the computer processors and data center for a long time, was slow to respond to the AI change. That completely allowed Nvidia to grow from a niche player to the most valuable semiconductor company in the world, with revenues that now eclipse Intel sales.
Gelsinger himself admitted that the company had lost its competitive spirit and expressed its frustration with the speed at which it reacted to a changing market. It was the moment he had said he would need to do something about it. So, in his first public appearance as CEO last month, he said that the change would take time and would not be easy.
“He won to happen overnight,” he said. “But I know we can get there.”
More stories like this are notable on Bloomberg.com
Posted on April 23, 2025