With around 108,900 employees by the end of 2024, Intels plan could cost tens of thousands of jobs.
This is not the first time Intel has cut staff on a large scale. In August last year, the company announced it would cut more than 15,000 locations to reduce costs.
Since 2022, Intel has begun to scale down its human resources due to declining revenue and slow response to the industry's shift to artificial intelligence.
The upcoming cut is said to be part of a business restructuring effort under the leadership of new CEO Lip-Bu Tan, who took over in March after the sudden departure of Pat Gelsinger. According to Bloomberg, the goal of this plan is to streamline the management apparatus and bring Intel back to the focus of technology.
The personnel streamlining may be announced along with the quarterly business results report, expected to be released on April 24. This is the time that many companies choose to announce restructuring measures towards comprehensive reform.
In addition to cutting staff, Lip-Bu Tan has also pledged to sell assets that are not in Intel's core direction. Last week, the company announced a deal to sell a majority stake in chip maker Altera for $4.46 billion. The deal is expected to be completed by the end of this year.
In the context of fierce competition and fluctuating market demand, cutting down on human resources and selling non-essential assets are considered Intel's strategic steps to consolidate its position and towards a long-term recovery.
