Struggling US processor Company Intel is set to slash staff numbers by a record 20% with Australia tipped to be affected.
The Company that is in a battle with the likes of Nvidia have already moved to reduce layers of 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 insiders who claim that Intel 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.
Now under new management the move come following the appointment of Chip veteran Lip-Bu Tan who was named Intel’s CEO last month, he has moved quickly to initiate change.
The 65-year-old executive was hired after last year’s ouster of CEO Pat Gelsinger, who struggled to execute his own turnaround bid for Intel.
Bloomberg claims that the cutbacks follow an effort last year 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.
Last week, the company agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management, a step toward 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, Tan said last month at the Intel Vision conference.
The company is scheduled to report first-quarter results on Thursday, giving Tan an opportunity to lay out more of his strategy.
A representative for Intel declined to comment.
