Intel is reportedly set to lay off 20% of its workforce this week, according to a Bloomberg report. Intel currently has around 108,000 employees, which means around 21,600 employees will be laid off. The move is part of a strategy to streamline management and refocus on the company's engineering-driven culture under the leadership of new CEO Lip Bu Tan.
Lip Bu Tan has previously taken steps to reshuffle management to reduce bureaucracy. This is the second round of large-scale layoffs by Intel to restore profitability.
Last August, more than 15,000 were laid off, with around 2,000 employees in Malaysia affected. Several foundry constructions were also canceled in Europe, with the scale of the expansion of its factory operations in Penang also being scaled back.
Intel's failure to compete in the artificial intelligence (AI) chip world, which is now dominated by NVIDIA, and issues with its Gen-13 and Gen-14 chips, have caused the company's financial position to suffer further. It also caused CEO Pat Gelsinger to be forced to resign suddenly in December last year.