Intel Corp is preparing to announce this week’s plans to reduce more than 20 % of its employees, with the aim of eliminating bureaucracy in the faltering chips maker, according to a person who is familiar with knowledge.
The person said that this step is part of an attempt to simplify the administration and rebuild a culture that relies on engineering, demanding not to identify it because the plans are special. This will be the first major restructuring in the shadow of the new CEO Lip-Bu Tan, whoTakelast month.
The discounts followed an effort last year to reduce about 15,000 jobs – a round of workers’ demobilizationDeclared in August. Intel 108,900 employees at the end of 2024 had a decrease from 124,800 in the previous year.
Intel actor refused to comment.
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Intel shares increased by 6.5 % in New York on Wednesday, which is its largest gain during the day in more than a week. The stock fell about 40 % last year and closed at $ 19.51 on Tuesday.
Tan aims at the heart of the iconic chips maker years after the Entlel giving up to competitors. Santa Clara, California, has lost its technological headquarters, and has been struggled to catch up with Nvidia Corp in artificial smart computing. This has contributed in three consecutive years of sales drops and red ink.
Tan, a veterans at Cadence Design Systems Inc. ,pledgeTo rotate Intel assets that are not essential in its mission and create more products. Last week, the companyAgree on the saleA 51 % stake in its Altera’s Altera chips unit to Silver Lake Management, a step towards this goal.
Tan said last month at the Intel Vision conference that INTEL needs to replace the engineering talents that she lost, improving its public budget and the best processing processing processes to meet the needs of potential customers.
The company is scheduled to report the results of the first quarter on Thursday, giving Tan an opportunity to develop more strategy. Although the worst of the Intel revenue is now behind it, according to Wall Street estimates, analysts do not offer a return to previous sales levels for years, if any.
The 65 -year -old CEO was appointed after the CEO of CEO for the last year, who struggled to implement his own Intel offer. He has begun in charge of expensive efforts to expand the company’s factory network-to seek Intel to a chips manufacturer for order.
But Intel has now delayed a lot of expansion efforts, including plans forOhio facilityIt was once expected to become the largest chip production center in the world. Intel was also ready to be the largest beneficiary of the money and science law 2022, but this program is now in a state of flow during President Donald Trump’s era.
Read more:What is at stake because Trump is looking to cancel the chips law
Manufacturing partnership with the semiconductor manufacturer Taiwan – SourceInvestor speculationIn recent months – it also looksLess. The CEO of TSMC CC WeI said last week that the company will continue to focus on its own business.
Along the way, Intel has been absent in the new most profitable dust industry. The company, which has long been controlled by the computer processor market and the personal data center, was slow to respond to the transformation of artificial intelligence. This turmoil allowed Nafidia growing from a player specializing in the most valuable semiconductor company in the world – with revenues that now outperform Intel sales.
Read more:How we missed a chance to lead the chips technology: Quicktake
Gelsiner himself admitted that the company lost its competitive spirit and expressed its frustration with the speed that its reaction was in the changing market. He did not give the time he said he would need to do anything about it. Tan said, in his first public appearance as an executive president last month, that the shift would take time and will not be easy.
He said: “This will not happen overnight.” “But I know we can get there.”
This story was originally shown on Fortune.com
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2025-04-23 17:12:00
