- Intel reportedly planning to chop 15-20% of manufacturing unit employees subsequent month
- Information comes as Intel reveals YoY income is flat, QoQ income may drop
- Lip-Bu Tan needs to streamline the workforce
Intel plans to put off round 15-20% of its manufacturing unit workforce because it appears to extend revenues and cope with ever-changing market circumstances
A report from OregonLive claims the cost-cutting effort, scheduled to start as quickly as mid-July 2025, will primarily have an effect on Intel Foundry, certainly one of its core enterprise divisions.
“These are tough actions however important to fulfill our affordability challenges and present monetary place of the corporate. It drives ache to each particular person,” manufacturing VP Naga Chandrasekaran reportedly shared in a memo with workers over the weekend.
Intel set for much more layoffs
The information comes as Intel continues to battle with its monetary efficiency – income remained flat year-over-year throughout its first quarter of 2025, with predictions for second-quarter income suggesting a quarter-over-quarter dip.
The corporate has already made vital reductions to its headcount, together with terminating 15,000 contract in August 2024.
It is believed that no voluntary buyouts might be supplied this time, with Intel as an alternative basing the layoffs on mission priorities, efficiency and ability assessments. Factories regarding superior chip improvement and employees in high-skilled roles might be amongst these much less more likely to be affected.
“We’re taking a disciplined and prudent method to assist continued funding in our core merchandise and foundry companies whereas maximizing operational price financial savings and capital effectivity,” CFO David Zinsner defined within the firm’s first-quarter earnings launch.
Moreover saving money, Intel’s method to layoffs additionally facilities round streamlining the workforce and eradicating inefficiencies by eliminating sure areas of center administration – one thing that new CEO Lip-Bu Tan pledged to do as he turns the corporate again right into a worthwhile enterprise.
TechRadar Professional has contacted Intel to substantiate its plans, however the firm didn’t reply instantly.
