Intel is preparing to slash over 20% of its workforce this week as part of a major restructuring effort. The move is aimed at simplifying operations and refocusing on its core engineering strengths. Lip-Bu Tan, who took over as CEO last month, is behind the decision.
What’s Driving the Cuts?
High operating costs and shrinking profit margins in the PC and data center markets have hurt Intel. The company has also fallen behind rivals like Nvidia in the AI chip space. Tan plans to cut $10 billion in costs this year, with layoffs being a significant part of that.
Simplifying the Organization
The restructuring is expected to streamline Intel’s management structure. The plan includes cutting out some middle management layers and having key chip teams report directly to the CEO. This should help Intel get back on track and work on key technologies.