(Reuters) -Intel is set to unveil plans this week to slash more than 20% of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies, Bloomberg News reported on Tuesday, citing a person with knowledge of the matter. The layoffs are part of a broader strategy to refocus on an engineering-driven culture, according […]
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Intel to lay off more than 20% of workforce, Bloomberg News reports
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(Reuters) -Intel is set to unveil plans this week to slash more than 20% of its workforce, in a move to streamline operations and reduce bureaucratic inefficiencies, Bloomberg News reported on Tuesday, citing a person with knowledge of the matter.
The layoffs are part of a broader strategy to refocus on an engineering-driven culture, according to the report.
Intel did not immediately respond to a Reuters request for comment. Its shares were up more than 4.5% in premarket trading on Wednesday.
The layoffs mark a major step under new CEO Lip-Bu Tan, who took over Intel last month, to revive the faltering American firm after years of challenges and management missteps.
Last month, Reuters reported that Tan was planning an overhaul of the company’s manufacturing and AI operations after the embattled firm lost its lead in chipmaking to Taiwan’s TSMC and in recent years missed out on surging demand for AI processors, allowing competitors such as Nvidia to dominate those markets.
Last week, Reuters reported that Tan was flattening Intel’s leadership team, and appointed a new AI chief to head Intel’s artificial intelligence ambitions.
However, the company’s AI plans remain uncertain after it relegated its Falcon Shores chips to internal testing, leaving it without a competitive flagship in the AI market.
The chipmaker is scheduled to report its first-quarter results on Thursday, and will offer the clearest look yet at Tan’s turnaround strategy which could face troubles with an escalating U.S.-China trade war and the threat of tit-for-tat tariffs.
The planned layoffs follow a significant reduction in workforce last August. Intel had said then it would slash 15% of its workforce as it pursues the turnaround strategy of previous CEO Pat Gelsinger, who aimed to restore Intel’s lead in manufacturing chips.
Gelsinger’s ambitious plans for Intel did not spark confidence in the company’s board who felt the turnaround strategy was not working and the progress of change was not fast enough, leading to his ousting at the end of last year.
The Santa Clara, California-based company had 108,900 employees at the end of 2024, according to a filing.
(Reporting by Bipasha Dey and Zaheer Kachwala in Bengaluru; Editing by Sherry Jacob-Phillips, Alan Barona and Shounak Dasgupta)