Intel may be preparing to lay off 20 percent of its staff
Intel is reportedly preparing to further reduce its headcount, this time by laying off more than 20 percent of its employees. It could announce a plan to do so as soon as this week. The struggling company had 108,900 employees at the end of last year, so it may be set to cut tens of thousands of jobs. According to a Bloomberg source, the aim of the downsizing is to streamline management operations and refocus Intel with an engineering-driven culture. Last August, Intel said it would cut more than 15,000 jobs to reduce costs. In fact, the company, which has been slow to embrace the industry's shift toward artificial intelligence, has been significantly reducing its headcount since 2022 amid declining sales. These latest purported layoffs would mark one of the first major restructuring measures since Lip-Bu Tan became CEO in March after the sudden departure of Pat Gelsinger. The company is set to report its quarterly earnings results on Thursday. Companies that are restructuring often announce layoffs around the time they release earnings reports. Tan has also pledged to sell off assets that aren't core to Intel's goals as he tries to turn the business around. Last week, it emerged that Intel is selling off a majority stake in chipmaker Altera for $4.46 billion. That deal is expected to close later this year.This article originally appeared on Engadget at https://www.engadget.com/big-tech/intel-may-be-preparing-to-lay-off-20-percent-of-its-staff-161557058.html?src=rss
Intel is reportedly preparing to further reduce its headcount, this time by laying off more than 20 percent of its employees. It could announce a plan to do so as soon as this week. The struggling company had 108,900 employees at the end of last year, so it may be set to cut tens of thousands of jobs. According to a Bloomberg source, the aim of the downsizing is to streamline management operations and refocus Intel with an engineering-driven culture.
Last August, Intel said it would cut more than 15,000 jobs to reduce costs. In fact, the company, which has been slow to embrace the industry's shift toward artificial intelligence, has been significantly reducing its headcount since 2022 amid declining sales.
These latest purported layoffs would mark one of the first major restructuring measures since Lip-Bu Tan became CEO in March after the sudden departure of Pat Gelsinger. The company is set to report its quarterly earnings results on Thursday. Companies that are restructuring often announce layoffs around the time they release earnings reports.
Tan has also pledged to sell off assets that aren't core to Intel's goals as he tries to turn the business around. Last week, it emerged that Intel is selling off a majority stake in chipmaker Altera for $4.46 billion. That deal is expected to close later this year.This article originally appeared on Engadget at https://www.engadget.com/big-tech/intel-may-be-preparing-to-lay-off-20-percent-of-its-staff-161557058.html?src=rss
