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Beleaguered chipmaker Intel has confirmed plans to restructure in a shift that will involve an unspecified number of layoffs. It was reported this week that the company could lay off around 20 percent of staff (it had 108,900 employees at the end of last year). In a memo, new CEO Lip-Bu Tan declined to detail the extent of the downsizing, which is largely aimed at reducing "unnecessary bureaucracy" and layers of middle management.
"I'm a big believer in the philosophy that the best leaders get the most done with the fewest people. We will embrace this mindset across the company, which will include empowering our top talent to make decisions and take greater ownership of key priorities," Tan wrote. "There is no way around the fact that these critical changes will reduce the size of our workforce. As I said when I joined, we need to make some very hard decisions to put our company on a solid footing for the future. This will begin in Q2 and we will move as quickly as possible over the next several months."
Intel has been downsizing significantly over the last few years. Just last August, the company said it would cut more than 15,000 jobs to reduce costs. Intel has been struggling with slowing sales — it didn't act quickly enough to keep up with the industry's shift toward artificial intelligence.
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