Intel is reportedly laying off 20% of its workforce this week, according to a Bloomberg report . Intel currently has around 108,000 employees, which means around 21,600 jobs will be cut. The move is part of a strategy to streamline management and refocus on the company's engineering-driven culture under new CEO Lip Bu Tan. So, what should you know about it?
For your information, Lip Bu Tan had already taken steps to reshuffle management to reduce bureaucracy. This is the second round of mass layoffs carried out by Intel to restore profitability. Last August, more than 15,000 were laid off, with around 2,000 employees in Malaysia affected. Several foundry construction projects were also cancelled in Europe, with the scale of the expansion of the factory operations in Penang also scaled back.
Additionally, Intel's failure to compete in the artificial intelligence (AI) chip world now dominated by NVIDIA, and issues with its Gen-13 and Gen-14 chips, have caused the company's financial position to suffer. It also led to the sudden resignation of CEO Pat Gelsinger in December last year.
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