Intel to relieve 20% of its workforce this week – Here’s the Reason
Intel Corporation, the California based technology company, is reportedly looking to cut off 20% of its global employees this week. The decision likely came from the shift in chief management recently and a part of restructuring the current structure after the new CEO Lip-Bu Tan. As reported by Bloomberg, Intel is looking out for ‘streamlining management’ and ‘eliminating bureaucracy’.
This decision of Tan, who took over the position last month is the first of the big changes and shifts in the company’s management. Intel is looking forward to reducing costs and streamlining management while the decision will ultimately affect thousands of workforce set globally under the company.
In order to confront the growing market competition, market trends and the declining revenue, especially in chip management, Intel is now reportedly cutting down its workforce. Competitors like AMD, Nvidia are thriving with cementing their brand and company and furthering in the sector while Intel has followed their last year trend of cutting off thousands of workforce to reshuffle.
Intel’s August 2024 slash resulted in 15,000 of their workforce jobless with a significant piece shaved off from the previous year as well. This cut off was marked under the name of the then new CEO Pat Gelsinger who was aiming to restore the company’s lead in manufacturing chips. Gelsinger’s plan didn’t impress or progress to the pace expected by the board of members who later ousted the CEO by the end of the same year.
As per Reuters’ report from last month, “Tan was planning an overhaul of the company’s manufacturing and Al operations after the embattled firm lost its lead in chipmaking to Taiwan’s TSMC (2330.TW) and in recent years missed out on surging demand for Al processors, allowing competitors such as Nvidia (NVDA.O) to dominate those markets.”
The chipmaker is expected to reveal the first quarter results by Thursday (24 April 2025), which will offer a clearer picture of Tan’s turnaround AI strategy, which could face turbulence due to the ongoing tug-of-tariff war between USA and China.
