This week, US chipmaker Intel is set to announce a new wave of layoffs that will affect 20% of its workforce, the first major restructuring under new CEO Lip-Bu Tan, who took over the company last month.
This week, US chipmaker Intel is set to announce a new wave of layoffs that will affect 20% of its workforce, the first major restructuring under new CEO Lip-Bu Tan, who took over the company last month.
According to a source at Bloomberg , the move is part of Intel's attempt to streamline management and rebuild its engineering culture.
In early August of last year, Intel announced the layoff of about 15,000 employees . As of the end of 2024, Intel had 108,900 employees, compared to 124,800 the previous year. That means a 20% reduction would affect more than 21,000 people.
In March, 65-year-old Lip-Bu Tan took over as Intel CEO . His compensation package includes a salary of $1 million plus a 200% performance-based bonus. It also includes $66 million in long-term awards, stock options and other financial incentives.
Tan is looking to turn the iconic chipmaker around after years of failure, with its stock down about 67% over the past five years. The company is also struggling to catch up with Nvidia in artificial intelligence computing.
The new CEO has also pledged to spin off Intel's assets that are not central to its mission and create more compelling products. Last week, the company agreed to sell a 51% stake in its programmable chip unit Altera to Silver Lake Management, a step toward that goal.
The company will report first-quarter results on Thursday, giving Tan a chance to lay out his strategy in more detail. While the worst of Intel's revenue decline is behind it, analysts don't expect the company to return to previous sales levels for years, according to Wall Street estimates.
In February, rumors emerged about a potential partnership between Intel and TSMC . But this month, the Taiwanese company said it was "not in any discussions with other companies regarding joint ventures, technology licensing."
