Intel to announce plans to cut over 20% of staff, Bloomberg reports
Bloomberg News has reported
.
Citing a person familiar with the matter, Bloomberg said that the move by Intel aims to eliminate bureaucracy at the struggling chipmaker.
The move is part of a bid to streamline management and rebuild an engineering-driven culture, the report said.
The cutbacks follow an effort last year to slash about 15,000 jobs – a round of lay-offs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year.
Among the 108,900 global Intel staff are 4,900 people employed at their chip manufacturing plant in Leixlip, Co Kildare.
It is not yet clear if the move by Intel to cut 20% of its staff will affect its workers in Ireland.
A new chipmaking facility, Fab 34, is
currently being built at the Leixlip site
, estimated to have cost at least $20 billion (€17.57 billion).
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Construction work is largely complete, according to Intel, and high-volume manufacturing of Intel Core Ultra processors on Intel 4 technology began there in September 2023.
The chipmaker is scheduled to report its first-quarter results tomorrow.
Last month, Intel appointed tech industry veteran Lip-Bu Tan as its new chief executive, who told the Intel team that it 'won't be easy' to overcome challenges faced by the company.
Intel is one of Silicon Valley's most iconic companies, but its fortunes have been eclipsed by Asian powerhouses TSMC and Samsung, which dominate the made-to-order semiconductor business.
The company was also caught by surprise with the emergence of Nvidia, a graphics chip maker, as the world's preeminent AI chip provider.
Nvidia's strength is in chips for powering AI, which are coveted by tech companies competing in that technology.
Intel's niche has been in chips used in traditional computing processes being eclipsed by the AI range.
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