Intel Will Reportedly Cut 20% Of Staff

Intel is reportedly preparing to lay off 20% of its workforce—more than 20,000 employees—as new CEO Lip-Bu Tan aims to “streamline management and rebuild an engineering-driven culture,” according to Bloomberg.

Intel has endured three consecutive years of declining sales and ongoing leadership turmoil. I Photo: Intel

The move follows last year’s cut of approximately 15,000 jobs. Shares of Intel jumped 7% on the news, rising to around $20, as investors bet on a successful turnaround.

The company has endured three consecutive years of declining sales and ongoing leadership turmoil.

Tan, who is overseeing his first quarterly earnings report this week, has pledged to reinforce Intel’s core businesses while spinning off non-essential units, Fortune Tech’s Andrew Nusca reported.

Analysts remain divided over whether Intel should be broken up. Tan hasn’t directly addressed the question, instead signaling a cautious middle path.

Despite its size—Intel employs more people than any other firm in the PHLX Semiconductor Index—its revenue per employee lags behind industry peers. Critics warn, however, that “you can’t cut your way to greatness.”