Intel will lay off all employees more than 20% of its workforce to optimize operations and eliminate administrative bottlenecks. Intel’s broader strategy of focusing on a more engineering-driven culture has led it to plan for large-scale layoffs.
Intel plans to place 20% of its workforce, see changes in AI operations, and know why
Intel, a Silicon Valley technology giant, will lay off more than 20% of its workforce to optimize operations and eliminate administrative bottlenecks. Intel’s broader strategy focused on a more engineering-driven culture has allowed it to plan large-scale layoffs, according to a report from Bloomberg News. Intel shares rose more than 4.5% in listing trading on Wednesday. After Lip-Bu Tan took over as Intel’s new CEO, this was her first overhaul as she worked for the company to overcome the company from years of challenges and management misconduct.
Reuters reported that Tan also plans to overhaul Intel’s manufacturing and AI operations after the troubled company lost its lead in chip manufacturing at Taiwan Semiconductor Manufacturing Corporation (TSMC). Other opportunities the company missed didn’t catch up with the growing demand for AI processors, which allowed competitors like Nvidia to dominate these markets.
Since Tan took over, she has been planning to change many areas of the company, including ruling and changing leadership. Just last week, Tan cut down the company’s leadership team and even chose a new AI leader to take care of Intel’s AI goals. Chipmakers’ upcoming first-quarter results on Thursday will see Tan’s restructuring plans, which could be challenged by intensified U.S.-China trade tensions and potential retaliatory tariffs.
