We recently reported that Intel will be laying off about 20 percent of its existing workforce, which is estimated to be 20,000 employees soon. Intel CEO Lip-Bu Tan has apparently made an announcement to the company regarding this matter.
There are no details on how many employees will be laid off, but he said that the number of employees will be reduced starting as early as the second quarter of this year and over the next few months, and according to the statement, the influence of bureaucracy within the company will be reduced, meaning that Intel will now focus more on building its engineering and technical workforce.
Last week, Lip-Bu Tan restructured Intel’s management team by appointing a new Chief Technology Officer and Chief AI Officer who will help reduce layers of bureaucracy within the company to facilitate collaboration between employees and management to allow Intel to introduce new products and services faster and more smoothly.
In the meantime, Intel will also update its work-from-home offering. Previously, employees were required to work three days in the office and two days at home, but since this rule was not followed well, a new four-day work schedule will come into effect from September 1 this year.
Intel is also expected to begin cutting its operating expenses by $1.5 billion over the next two years to reduce the company's financial drain.
Lip-Bu Tan said that the decisions to be made in the near and medium term will be difficult to make, but are necessary to restore Intel's reputation as an icon of the computing industry that it enjoyed in the 90s and early 2000s.