By Adam Clark
Intel CEO Lip-Bu Tan has promised a radical shake-up of the beleaguered chip company and his latest move looks to be mass layoffs.
The chip company plans to announce the reduction of more than 20% of its workforce this week, Bloomberg reported late Tuesday, citing a person familiar with the matter. Intel declined to comment on the report.
The reported cuts would affect around 22,000 workers, based on Intel's global workforce of 108,900 as at the end of 2024. Last year, Intel announced it would lay off 15,000 employees.
Intel shares were up 4.6% in premarket trading on Wednesday, having fallen 43% over the past 12 months.
Intel is scheduled to report first-quarter earnings on Thursday. Tan was appointed CEO last month and is looking to prioritize its core chip design and chip-manufacturing businesses.
Intel executives said recently that the company had begun low-volume testing on its new 18A chip-manufacturing process, which it hopes will give it a technological lead against rival Taiwan Semiconductor Manufacturing.
While producing Intel's own chips will provide some validation for its costly chip-manufacturing efforts, the real test will be whether it can attract significant external customers for the 18A process. Nvidia and Broadcom are running tests on the process, Reuters reported previously.
Write to Adam Clark at adam.clark@barrons.com
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April 23, 2025 07:45 ET (11:45 GMT)
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