Intel, the American chipmaking giant, is facing a tough time, and reports suggest that the company is set to lay off a big number of employees this week. The company's new CEO, Lip-Bu Tan, is working on a major plan to improve Intel, and the decision to cut jobs comes just a day before the company is set to announce its first-quarter results.
According to a Bloomberg report, CEO Tan plans to lay off more than 20% of Intel's workforce. As of the end of 2024, Intel had 108,900 employees. This follows the August 2024 layoffs, when the company let go of around 15,000 workers. Based on this 20% figure, about 21,000 jobs could be at risk, given the company's current workforce capacity.
The report also states that the new CEO’s strategy includes reducing non-essential operations and focusing more on engineering. In March, he mentioned plans to bring back lost engineering talent, simplify manufacturing processes, and improve Intel’s financial situation.
This layoff will impact Intel's global workforce. The company has been struggling in the chip-making business and is looking to streamline operations and control costs. Intel has faced increasing competition from companies like Nvidia and AMD. Last year, Intel also laid off 15,000 employees. At the end of 2024, the company had 108,900 employees, compared to 124,800 at the beginning of the previous year. The additional layoffs are seen as a major jolt to the job market.