The report said layoffs are part of a broader strategy to refocus on engineering-driven culture.
Intel did not immediately respond to Reuters’ request for comment.
The layoffs mark the first major move under new CEO Lip-Bu Tan, who took over the resurgence of the struggling Silicon Valley chipmaker last month after years of challenges.
Last month, Reuters reported that Tan was considering major changes in his chip manufacturing approach and artificial intelligence strategies.
The new trajectory involves reorganizing Intel’s AI strategy and implementing staff cuts to address what TAN calls slow and bloated intermediate management. Shortly after the date, he told City Hall employees that the company would have to make “hard decisions.” Last week, Reuters reported that Tan restructured the company by changing color to his leadership team, and the key chip team now reports directly to him. In August, planned layoffs fell sharply when Intel said it planned to lay off 15% of its jobs, or about 15,000 positions.
The work layoffs in 2024, part of this year’s $10 billion cost reduction plan, is driven by high costs, with narrowing margins in Intel’s core PC and data center sectors, and an expensive pivot to AI Chips – where Intel lags behind competitors like NVIDIA.
According to the document, the Santa Clara, California-based company has 108,900 employees by the end of 2024.
The chipmaker plans to report its first-quarter results on Thursday.
