PULSE POINTS:
❓What Happened: Intel reportedly plans to reduce its workforce by more than 20 percent.
👥 Who’s Involved: Intel, CEO Lip-Bu Tan, and rival company Nvidia.
📍 Where & When: Announcement expected this week, unspecified global regions affected.
⚠️ Impact: The tech company faces challenges in artificial intelligence (AI) computing and supply chain disruptions.
IN FULL:
Intel Corp. is preparing to announce a significant workforce reduction, potentially cutting over 20 percent of its employees to address declining sales and bolster its focus on engineering, according to reports. This decision comes as the U.S. semiconductor giant works to regain its competitive edge, having lagged behind companies like Nvidia in artificial intelligence (AI) computing.
Sources indicate that the new CEO, Lip-Bu Tan, who recently assumed leadership, aims to streamline operations and enhance the company’s engineering focus. However, Intel has not verified reports of the planned layoffs. The specifics regarding which regions might be affected also remain unclear.
While the corporate media appears to be readying itself to blame President Donald J. Trump’s tariff policy for Intel’s struggles, an exemption for computer parts and related products is already in place, and Nvidia is responding to the new situation over the longer term by reshoring production to the U.S.
Notably, Intel already reduced its workforce by approximately 15,000 under former President Joe Biden last year, ending with 108,900 employees, compared to 124,800 in the previous period.
Once recognized as the premier computer chipmaker worldwide, Intel has been overtaken by firms more adept at capitalizing on AI advancements and the corresponding demand for specialized chips. The company’s approach to AI, now widely seen as a transformative technology, has been considered sluggish.