Tech giant Intel is to announce plans this week to cut over 20% of staff, according to Bloomberg, in a bid to “eliminate bureaucracy”.
The cuts at the chipmaker would be seen as as the first significant restructuring effort under new chief executive Lip-Bu Tan, who is said to be keen to streamline management and rebuild an engineering-driven culture in a global company that currently has close to 110,000 employees, down from 124,800 the previous year.
In March, in his first public statement as CEO, Tan spoke of “The New Intel,” which would focus on technical matters and a close relationship with customers.
“Under my leadership, Intel will be a company focused on engineering. We will push ourselves to develop the best products, listen closely to our customers, and hold ourselves accountable for our commitments,” he said.
Tan was appointed CEO following the departure of Pat Gelsinger, who sought to expand Intel’s manufacturing network and transform the company into a chip manufacturer for external customers. The struggling company saw its stock price plunge 60% in 2024, and faces significant challenges, including declining sales and stiff competition from Nvidia in AI computing.
Intel is one of the biggest employers in Ireland, employing 4,900 staff mainly at its Leixlip plant which hosts its new Fab 34 chipmaking facility. However, it is reported that cutbacks in Ireland may have been already implemented last year.