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Intel to announce plans this week to cut more than 20% of staff

X

XYang2023

Well-known member
The layoffs would be the first major restructuring under new CEO Tan Lip-Bu, who took the helm in March.

The layoffs would be the first major restructuring under new CEO Tan Lip-Bu, who took the helm in March.PHOTO: REUTERS

UPDATED Apr 23, 2025, 09:45 AM

TAIPEI – Intel is poised to announce plans this week to cut more than 20 per cent of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter.

The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private. It would be the first major restructuring under new chief executive officer Tan Lip-Bu, who took the helm in March.

The cutbacks follow an effort in 2024 to slash about 15,000 jobs – a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.

A representative for Intel declined to comment.

Mr Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The US chip giant lost its technological edge and has struggled to catch up with Nvidia in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink.

Mr Tan, a veteran of Cadence Design Systems, has vowed to spin off Intel assets that aren’t central to its mission and create more compelling products. Last week, the company agreed to sell a 51 per cent stake in its programmable chips unit Altera to Silver Lake Management, a step towards that goal.

Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Mr Tan said in March at the Intel Vision conference.

www.straitstimes.com

Intel to announce plans this week to cut more than 20% of staff

Layoffs would be the first major restructuring under new CEO Tan Lip-Bu, who took the helm in March. Read more at straitstimes.com. Read more at straitstimes.com.
www.straitstimes.com www.straitstimes.com
 
This will result in a RIF of over 40% when combined with the last round of layoffs. IMHO cuts this deep will do more damage to morale than any gains they might make, unless Tan can clearly show they are aimed at reducing management and he is making engineers lives better. The engineering staff already took a serious hit in the last round of layoffs. Many of them their most experience engineers leaving though voluntary severance.
 
I think definitely they will focus on middle management and maybe sales and some software developers. I think at the same time they will hire engineers to work on GPUs.

We also know gen AI can do well in coding and related tasks. It makes sense to copy similar actions in Microsoft, Google and Meta.

If cost per role is around 200k, that would be 4B annual saving.
 
Lip Bu Tan is splitting the DCAI group to Datacenter group & AI group. DC group will only focus on DC CPUs under Karin Eibschitz. AI group will be led by the new CTO, Sachin Katti, will focus on AI accelerators for DC. It looks like NEX & all groups under previous CTO will also be led by Sachin.

www.crn.com

As Intel Creates New AI Group, Data Center Division To ‘Refocus’ On CPUs: Memos

With Intel’s new CTO and AI chief taking over responsibilities for the company’s AI road map and strategy, the business unit most recently known as the Data Center and AI Group will “refocus” on CPUs and take on an older name, according to two internal memos seen by CRN.
www.crn.com www.crn.com
 
dkr1986 said:
Lip Bu Tan is splitting the DCAI group to Datacenter group & AI group. DC group will only focus on DC CPUs under Karin Eibschitz. AI group will be led by the new CTO, Sachin Katti, will focus on AI accelerators for DC. It looks like NEX & all groups under previous CTO will also be led by Sachin.

www.crn.com

As Intel Creates New AI Group, Data Center Division To ‘Refocus’ On CPUs: Memos

With Intel’s new CTO and AI chief taking over responsibilities for the company’s AI road map and strategy, the business unit most recently known as the Data Center and AI Group will “refocus” on CPUs and take on an older name, according to two internal memos seen by CRN.
www.crn.com www.crn.com
Click to expand...
It is reverting back to "AXG".
 
Artificer60 said:
This will result in a RIF of over 40% when combined with the last round of layoffs. IMHO cuts this deep will do more damage to morale than any gains they might make, unless Tan can clearly show they are aimed at reducing management and he is making engineers lives better. The engineering staff already took a serious hit in the last round of layoffs. Many of them their most experience engineers leaving though voluntary severance.
Click to expand...
Hard to see how cutting workforce will make engineers let alone anyone’s lives better at intel. Maybe less workload for the janitorial staff
 
Artificer60 said:
This will result in a RIF of over 40% when combined with the last round of layoffs. IMHO cuts this deep will do more damage to morale than any gains they might make, unless Tan can clearly show they are aimed at reducing management and he is making engineers lives better. The engineering staff already took a serious hit in the last round of layoffs. Many of them their most experience engineers leaving though voluntary severance.
Click to expand...

Its all about shareholder value.

Staff unhappy so what!

I thought this is the US way of doing business
 
Barnsley said:
Its all about shareholder value.

Staff unhappy so what!

I thought this is the US way of doing business
Click to expand...

Exactly, a bunch of bleeding hearts, need to suck it up.

Intel is not a spa, trim to the bone, prepare for Lip-Bu Tan's Intel 6.0 (or 7.0 ... I lost count).

Regardless of what Tan says in public, mostly politically focused at Trump and his wet-dreams of chip supremacy, Tan leans fabless, favoring design efficiency over Gelsinger’s fab-heavy strategy, aligning with Apple, AMD, and Nvidia trends.

Tan’s history at Cadence and investments in design-focused firms suggest preference for fabless model’s flexibility, cost-efficiency.

Don't forget, Gelsinger fired Tan from Intel's board, reportedly over strategic disagreements (Fab vs Fabless).

As of the latest cuts:

Revenue per Employee
Intel ~$570,000
Qualcomm ~$870,000
AMD ~$1,200,000
TSMC ~$1,270,000
Nvidia ~$1,420,000
Apple ~$2,400,000
 
fansink said:
Exactly, a bunch of bleeding hearts, need to suck it up.

Intel is not a spa, trim to the bone, prepare for Lip-Bu Tan's Intel 6.0 (or 7.0 ... I lost count).

Regardless of what Tan says in public, mostly politically focused at Trump and his wet-dreams of chip supremacy, Tan leans fabless, favoring design efficiency over Gelsinger’s fab-heavy strategy, aligning with Apple, AMD, and Nvidia trends.

Tan’s history at Cadence and investments in design-focused firms suggest preference for fabless model’s flexibility, cost-efficiency.

Don't forget, Gelsinger fired Tan from Intel's board, reportedly over strategic disagreements (Fab vs Fabless).

As of the latest cuts:

Revenue per Employee
Intel ~$570,000
Qualcomm ~$870,000
AMD ~$1,200,000
TSMC ~$1,270,000
Nvidia ~$1,420,000
Apple ~$2,400,000
Click to expand...

What do you think Trump and his cronies have more of, AAPL, NVDA, or INTC.

What about you and your family and friends.
 
Pat did the same thing

economictimes.indiatimes.com

Intel CEO Pat Gelsinger says 15,000 job cut is painful but necessary for 'a new era of growth'. Read full letter here

Intel Layoffs: Intel revealed plans to reduce its workforce by 15%, translating to approximately 15,000 roles, to manage costs better. CEO Pat Gelsinger emphasized the need for the company to align its cost structure with its new operating model. Enhanced retirement offerings and voluntary...
economictimes.indiatimes.com economictimes.indiatimes.com

lets hope Tan didn't get layoff by Intel like Pat. Layoff seem to be the play book of every CEO.
 
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