Intel layoffs: CEO Lip-Bu Tan announces key restructuring plans to cut “unnecessary bureaucracy”
Announcements on the official website show that Lip-bu Tan, CEO of the big tech company Intel, announced a key restructuring plan for his chip production giant on Wednesday, April 30, and hints about the upcoming layoffs.
In his statement, Lip-bu Tan said the company plans to focus its operations on its engineering efforts that are creating “unnecessary bureaucracy” that is slowing the company.
“I was surprised to find that the most important KPI for many Intel managers in recent years is the size of their teams. Going forward, that’s not the case,” said Intel CEO. The Intel CEO highlighted this thinking process, noting that the best leaders will get fewer people to get the job done.
“These key changes will reduce the size of our workforce, which is unsolvable,” he said.
This restructuring operation will be the first time since Lip-Bu Tan took over as the company’s new CEO last month. The new CEO is focusing on making the organization “lean” and saving time and energy that is spent on internal administration rather than bringing the business to the growth.
More than 20% of layoffs?
according to Bloomberg Intel will lay off more than 20% of its employees on April 23 to reduce bureaucracy in struggling companies, the report said.
The upcoming layoffs will come after Intel’s decision to lay off 15,000 jobs in August 2024, and as of 2024, the large tech company’s employees have worked under it, compared with 1,24,800 employees in the previous year.
The company declined to respond to inquiries sent by the news agency.
Working from the office
According to official Intel data, the company currently requires its hybrid employees to work at least three days in offices and other homes.
“I strongly believe that our website must be a vibrant collaboration hub that reflects the culture in our actions,” said Intel CEO.
In the April 24 announcement, the company changed its minimum work from office requirements to at least four days a week compared to the current three-day level.
“We will update the policy by September 1 so that it will take four days a week before September 1. I want to let you know in advance so that you have time to make any adjustments to your day job.”
