Intel is reportedly on the verge of announcing a layoff that cuts more than 20% of staff in the chipmaker’s first major move under new CEO Lip-Bu Tan.
The company’s cuts are an attempt to reduce bureaucracy, streamline management, and rebuild an engineering-driven culture with one Intel with knowledge of the situation I said Bloomberg.
Tan, who took over as Intel’s CEO after Pat Gelsinger was ousted last year, wants to guide chipmakers to lead a comeback after years of industry advantage fades.
Intel is finding it’s fighting to chase Nvidia in AI computing, but pointed out at the Intel Vision Conference last month, Tan is chasing Nvidia in AI computing, losing engineers, improving manufacturing processes and more integrated manufacturing processes.
In the meantime, TAN reportedly is trying to offload non-essential assets and focus on creating more attractive products. To achieve that goal, the company recently agreed to sell a 51% stake in the programmable chips unit Altera to Silver Lake Management.
Intel CEO may provide more information about what he is doing in the company’s first quarter results report on Thursday, Bloomberg noted.
However, analysts reportedly will take years for the company to return to previous sales. On a more positive note, Wall Street estimates that the worst of Intel’s decline in revenue has ended.
Intel’s reported employee cuts wipe out its $10 billion cost-cutting plan, which includes cutting over 15,000 jobs in August. This is about 15% of the world’s workforce.
Intel shares rose more than 5.5% on Wednesday.
Alana Mastrangelo is a reporter for Breitbart News. You can follow her Facebook and x at @armestrangeloand on Instagram.
