Intel confirms wave of layoffs: all about increasing efficiency

The rumor mill was right: Intel's new CEO Lip-Bu Tan confirmed another wave of layoffs at the announcement of the latest business figures. This time it is to affect managers in particular. The restructuring is intended to shift the focus to engineering within the company.

"Intel is taking steps to achieve better and more efficient execution across all business units," the annual report states. The plan includes streamlining the organization, reducing management levels and accelerating decision-making processes. As part of these measures, Intel will focus on "helping engineers develop great products, strengthening accountability across the organization and making it easier for customers to work with Intel."

Intel has not yet commented on the extent of the wave of layoffs. In the run-up to the announcement, there were rumors of 20 percent, which corresponds to around 20,000 jobs. It is also unclear how much the redundancy costs will be. A one-off sum in the billions is to be expected.

Operating expenses and investments will also fall

Intel also wants to reduce operating expenses – including research, development and marketing costs. The 17.5 billion US dollars in operating expenses originally projected for 2025 will fall to 17 billion. Next year, 16 billion dollars are planned for this item.

"Further operational efficiencies and better utilization of assets under construction" will save $2 billion in gross capital expenditures in 2025 – dropping from $20 billion to $18 billion. In February, Intel announced further delays to its new semiconductor plants in the US, which will save money in the short term.

(mma)