Intel’s recent struggles have been compounded by its sluggish entry into the booming AI market, where rivals like Nvidia have surged ahead.
Digital Desk: Under the direction of CEO Lip-Bu Tan, Intel Corporation plans to conduct widespread layoffs that will affect over 20% of its worldwide employees. As per a report, Intel implements this restructuring strategy to cut expenses and bureaucracy and bring back its engineering culture as financial challenges and marketplace competition increase.
The newest phase of staff layoffs will impact numerous workers operating in Intel facilities worldwide. Intel has cut its staff numbers by another 15,000 since last year that brings the overall employment to 108,900 employees by 2024, because it started from 124,800 employees the previous year. Intel plans to reduce expenses while strengthening its product line because the company confronts reduced revenue along with competition from AMD and Nvidia, and manufacturing performance problems.
Tan, a veteran executive , has outlined his approach to refine Intel by bringing together the company's chip designing and manufacturing capabilities and eliminating less profitable market segments. At his debut appearance before company employees Tan discussed Intel's extensive problems but stressed his confidence regarding future success. He said we will succeed even though the change takes time.
Intel’s recent struggles have been compounded by its sluggish entry into the booming AI market, where rivals like Nvidia have surged ahead . The dominance of Nvidia's AI and high-performance computing sector functions as the main driver behind becoming the world's most valuable semiconductor company which Intel failed to capitalize on.
Major expansion projects at Intel including its Ohio chip facility stopped due to the restructuring process. Tan’s leadership impact along with Intel’s future direction will likely be clarified through the upcoming first-quarter earnings report which is scheduled for delivery on Thursday.
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