In This Article:
April 23 - shares of Intel (NASDAQ:INTC) saw a more than 3% rise in premarket trading Wednesday following a report that the company is preparing to cut over 20% of its global workforce.
The move is part of a broader cost-cutting initiative under new Chief Executive Lip-Bu Tan, who took the reins in March. The reported layoffs are aimed at streamlining operations and eliminating what Tan has described as "bloated" layers of middle management, Bloomberg reported, citing sources familiar with the matter.
The company is expected to focus more heavily on core engineering and artificial intelligence development. Intel's key chip divisions now report directly to Tan, signaling a flatter leadership structure. A 17 billion facility in Ireland is said to be central to the firm's turnaround efforts, according to the report.
Last year, Intel cut around 15% of its workforce, approximately 15,000 roles, as part of a $10 billion cost-reduction plan. Headcount had already fallen to 108,900 by the end of 2024, down from 124,800 the year prior.
Intel, headquartered in Santa Clara, California, is set to release its first-quarter earnings on Thursday. Investors will be watching for further clues on Tan's long-term strategic direction.
This article first appeared on GuruFocus.