Intel (Intc) CEO LIP-BU TAN started his first quarter presentation at the helm of the troubled chip maker by announcing an important overhaul in the workplace that strives for innovation.
The Chief Executive said that he is restructuring Intel with the top leadership of 'all critical product production' teams that reported him directly. Tan also requires a four -day return to office policy effectively in the third quarter.
Tan said that Intel is aimed at “bringing back critically lost talent and recruiting new people.” In recent years, the company has been suffering from a high turnover among managers.
At the same time, Intel is reportedly planning to reduce 20% of its workforce, although the company has not confirmed the cuts in a call with analysts. The task equipment would follow at 12,000 job reductions announced in 2022 and an additional 15,000 reported in 2024.
“We will enable smaller teams to move faster and make better decisions, and we will considerably reduce the number of layers that stand in the way,” Tan said.
Intel CFO David Zinner said that simplifying the company's organizational structure helped to reduce his guidance for operational expenses by $ 500 million, with the chipmaker expected to spend $ 17 billion in 2025.
Next: April 24 at 16:00:02 pm Edt
Intel reported his first quarter in the profit after the bell on Thursday and defeated Wall Street's expectations on the upper and company rules, but the disappointing prospects sent the share of falling in the trade after hours, Yahoo Finance reports thanley.
Shares of Intel fell more than 6% after the announcement, but Losing Pared after Tan's comment. The stock has fallen by 38% in the last 12 months.
Next: April 24 at 16:00:02 pm Edt
Intel-De only American chip manufacturer who is able to produce leading semiconductors on a scale-has had difficulty keeping up with an increasingly AI-dominated market in recent years.
The company has lost the market share to rival Advanced Micro Devices (AMD) because the budding production company is created the financial cash and tensions for tensions.
Former managers have argued that the decline of Intel – of which they claim is the result of poor decision -making and a long series of critical missteps – is partly due to the oversized workforce. These execs told Yahoo Finance in March that cutting the middle management Intel could help achieve a change.
On the other hand, two current employees in the Intel production company previously told Yahoo Finance that employees were anxious and deleted for fired. The employees said that the cutbacks could dampen and create all the moral and chaos, just like Intel tries to introduce 18A, a long -awaited new production technology, which could place the for the leading contract chip manufacturer TSMC (TSM).
