Bad news for employees of this IT company as 21000 to be sacked due to…, not Narayana Murthy’s Infosys, Ratan Tata’s TCS, Wipro, Google, Microsoft, IBM, name is…

Layoffs have increasingly become a ‘new standard’ in today’s corporate environment. Now, as per the latest updates, Intel is reportedly planning to cut over 20% of its workforce, potentially affecting more than 21,000 employees. According to a Bloomberg News reported on Tuesday, citing a person with knowledge of the matter, this decision is part of an effort to simplify the company’s operations and reduce bureaucratic inefficiencies.

The layoffs are part of a larger strategy aimed at realigning the company with an engineering-focused culture, according to the report. Its shares rose more than 4.5% in premarket trading on Wednesday. The layoffs are a major move by new CEO Lip-Bu Tan, who took charge last month, as he works to turn around the struggling American company after years of setbacks and leadership issues.

According to a report by Reuters last month, Tan is planning a major overhaul of Intel’s manufacturing and AI operations. The company lost its lead in chipmaking to Taiwan’s TSMC (2330.TW) and, in recent years, failed to capitalize on the surge in demand for AI processors, leaving competitors like Nvidia (NVDA.O) to dominate the market.

Bad news for employees of this IT company as 21000 to be sacked due to…, not Narayana Murthy’s Infosys, Ratan Tata’s TCS, Wipro, Google, Microsoft, IBM, name is…

According to a report by Reuters last month, Tan was planning a major overhaul of Intel’s manufacturing and AI operations. The company lost its lead in chipmaking to Taiwan’s TSMC and, in recent years, failed to capitalize on the surge in demand for AI processors, leaving competitors like Nvidia (NVDA.O) to dominate the market.

Last week, Reuters reported that Tan was restructuring Intel’s leadership team and appointed a new AI chief to lead the company’s artificial intelligence efforts. However, Intel’s AI plans remain unclear, as it has relegated its Falcon Shores chips to internal testing, leaving the company without a competitive flagship product in the AI market, the report further mentioned. The company had approximately 108,900 employees at the end of last year, following the announcement of 15,000 job cuts in August 2024.

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