Intel to Cut Over 15,000 Jobs with Layoffs Targeting Up to 30% of Workforce as CEO Lip-Bu Tan Says No More “Blank Checks”

In a bold move to regain financial footing, Intel is set to significantly reduce its workforce, targeting a decrease of over one-third as it aims to counter recent operating losses and stabilize its financial health.

Intel’s Strategic Shift Towards Enhanced Financial Efficiency to Elevate Shareholder Value

Intel’s CEO, Lip-Bu Tan, has acknowledged the pressing need for robust strategies to catalyze the company’s economic recovery. Central to this strategy has been a series of substantial layoffs. Recently, Intel disclosed during its second-quarter earnings report that it plans to trim its workforce to 75, 000 employees, a reduction exceeding 30% compared to last year’s figures (source).This reduction marks one of the most significant rounds of layoffs in the company’s history.

Although the specifics of the layoffs are not entirely clear at this moment, preliminary analyses suggest that the most affected areas will likely include projects that have underperformed, particularly in regions such as Germany, Poland, and Costa Rica, which may see higher layoff percentages. With Wall Street’s insistence on a clear trajectory towards profitability, these layoffs represent a critical step in addressing ongoing operating losses, which is a primary focus of CEO Tan.

Intel CEO Lip-Bu Tan. Image: Intel Corporation

In addition to workforce reductions, Tan is implementing structural changes within the organization to promote efficiency. By consolidating roles and establishing new operational divisions tailored to respond to customer demands, Intel is determined to prioritize financial sustainability. As a result, projects that do not demonstrate promising financial viability, such as the Intel Foundry and certain aspects of its chip production roadmap, will face significant cutbacks, a development likely to surprise many loyal customers.

We are laser-focused on strengthening our core product portfolio and our AI roadmap to better serve customers. We are also taking the actions needed to build a more financially disciplined foundry. It’s going to take time, but we see clear opportunities to enhance our competitive position, improve our profitability and create long-term shareholder value.

The current landscape for Intel is undeniably challenging. As the company embarks on a journey towards financial recovery, it may take months—or even years—to realize substantial improvement. However, there is a palpable sense of optimism among investors, as CEO Tan appears committed to making difficult but necessary choices while placing a high value on shareholder interests.

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