Summary: A report claims that Intel plans to cut its staff by over 20%. However, it is unclear if these staff cuts will help the company turn things around after years of struggle.

Intel used to be the darling of the semiconductor industry. Almost every computer on the market was powered by an Intel CPU. These days, sure, Intel still commands the majority. However, advancements made by AMD, Apple, and Qualcomm have given customers more alternatives.

Intel could cut off 20% of its current staff soon

Not to mention, Intel’s failure to anticipate the demand for Arm-based chipsets has put the company in a disadvantageous position. Now, in a bid to make itself leaner, a report from Bloomberg claims that Intel plans to cut over 20% of its staff.

This isn’t the first time Intel has conducted a round of layoffs. The company slashed about 15,000 jobs last August, bringing its total employees down from around 124,800 to 108,900.

Intel’s latest CEO is Lip-Bu Tan, who took over from Pat Gelsinger this March. Under Tan’s leadership, Intel plans to spin off assets that aren’t central to its mission. This includes selling a 51% stake in its programmable chips unit, Altera, to Silver Lake Management. According to Tan, Intel needs to replace its engineering talent and attune its manufacturing processes.

Company’s struggles

Intel has been struggling for the past few years. The company has been slow in anticipating the rise in demand for Arm-based chips. The company tried its hand at making it but ultimately called it quits. Intel has also been slow on the uptake when it came to the AI boom. This allowed other players, such as NVIDIA, to corner the market.

Let’s not forget the various controversies Intel has found itself in over the years. This includes Intel’s 13th and 14th generation Raptor Lake CPUs. Customers who bought the CPUs encountered a high number of crashes and blue screens. The issues were due to a bug that caused the CPU to request higher-than-needed voltage levels. In some cases, it actually caused physical damage.

It remains to be seen whether this staff reduction at Intel will help the company turn things around.

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