At the end of 2024, Intel had 108,900 employees. Now the chipping giant is planning to reduce more than 33,000 jobs to reduce the workforce to 75,000 employees by the end of the year.
Intel CEO LIP-BU TAN, 65, said in one Memo for staff On Thursday, that Intel implements a plan to reduce its workforce by 15%. The dismissals are on top of the approximately 21,000 roles (approximately 20% of Intel’s workforce), the company released from April to June, which was mainly aimed at reducing layers of middle management.
Intel announced earlier in August that last year it fired 15% of its workforce, or more than 15,000 employees.
Related: Intel requires that employees work more often from the office: ‘This promotion is necessary’
In his second quarter winning report Intel released on Thursday, reported a sixth consecutive quarterly loss of $ 2.9 billion, almost double its loss of $ 1.6 billion at the same time a year earlier. The increased loss was mainly due to restructuring costs From $ 1.9 billion due to cuts on jobs.
Tan mentioned in a conference interest With analysts and investors after the report that he had completed “a systematic review” of Intel’s workforce and expenditure over the past three months.
“Our goal is to reduce inefficiencies and dismissals and to increase accountability at every level of the company,” Tan said during the call. “We have to make the company right mouse button and peel back.”
Intel CEO LIP-BU TAN. Photographer: Annabelle Chih/Bloomberg via Getty Images
Tan, who was previously CEO of Cadans Design Systems from Chipsoftware company From 2009 to 2021is now the task of turning Intel around afterwards three years old of falling income. He have become Intel’s CEO on March 18, to replace the former CEO Pat Gelsinger.
Intel is confronted with competition from rival companies such as Nvidia, which have recorded a larger part of the AI chip market. NVIDIA last year had between 70% and 95% of the market share for AI chips, compared to Intel’s less than 1%, per CNBC.
Related: How Nvidia CEO Jensen Huang transformed a graphic card company into an AI giant: “One of the most remarkable business pivots in history”
Intel, however, tries to catch up. The company plans to launch more efficient chips later this year to better compete with Nvidia and other rivals, per The Wall Street Journal.
Intel stock Had fell by more than 7% in the past month, but an increase of almost 2% years to date.
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At the end of 2024, Intel had 108,900 employees. Now the chipping giant is planning to reduce more than 33,000 jobs to reduce the workforce to 75,000 employees by the end of the year.
Intel CEO LIP-BU TAN, 65, said in one Memo for staff On Thursday, that Intel implements a plan to reduce its workforce by 15%. The dismissals are on top of the approximately 21,000 roles (approximately 20% of Intel’s workforce), the company released from April to June, which was mainly aimed at reducing layers of middle management.
Intel announced earlier in August that last year it fired 15% of its workforce, or more than 15,000 employees.
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