Major Workforce Reduction Announced
In a surprising move, Intel is preparing to announce the layoff of approximately 20% of its workforce later this week, according to reports from Bloomberg. This decision marks the first major restructuring under new CEO Lip Bo Tan, who assumed the role just last month.
The Goal: Cut Costs and Streamline Operations
The layoffs are part of a broader plan to reduce operational costs, simplify internal processes, and overcome bureaucratic hurdles that have slowed innovation and growth.
Previous Layoffs and Strategic Shifts
Intel had already laid off 15,000 employees in August 2024, reducing its global headcount to 108,900. In addition, the company sold a majority stake in Altera, its programmable chip unit, to Silver Lake for $4.46 billion, and postponed plans to build a new plant in Ohio.
Market Reaction: Stock Climbs Despite Cuts
Despite the severity of the layoffs, Intel’s stock (INTC) rose 3.56%, hitting $19.51 during Wednesday’s trading. The market’s upbeat response signals investor approval of the bold restructuring moves.
Looking Ahead: A Turning Point for Intel?
Investors and analysts alike are watching closely to see whether these decisive actions by the new CEO will spark a true turnaround for the tech giant. The next few months will be crucial in determining the success of this aggressive strategy.
