Intel is planning to cut more than 20% of its workforce as part of a plan to make the company more efficient, according to a report. The job cuts aim to reduce unnecessary layers of management and focus more on engineering, the report said.
This move comes under Intel’s new CEO, Lip-Bu Tan, who took over last month. Tan is looking to turn around the company after it faced several years of challenges. He has already discussed making big changes to how Intel makes chips and works on artificial intelligence (AI). Part of this plan includes reducing the number of employees in middle management, which Tan has described as slow and inefficient.
These job cuts follow an earlier reduction in 2023, when Intel announced it would cut about 15% of its jobs, or around 15,000 positions. The latest layoffs are part of a larger $10 billion cost-saving plan for 2024. Intel’s core business, including its PC and data center divisions, has seen shrinking profits, and the company has been spending heavily to develop AI chips, an area where it is behind competitors like Nvidia.
By the end of 2024, Intel had about 108,900 employees. The company is set to announce its first-quarter financial results on Thursday.
