Intel Go ahead with its restructuring, and of course, this also goes through mass layoffs. This same week, according to Bloomberg, the company He plans to say goodbye to 20% of his template. Approximately 21,000 Intel workers will have to leave their post, according to forecasts.
In Intel they consider that the dismissals are part of the plan of their renewed directive, with Lip-Bu so at the head, to optimize management and management, and to rebuild the company’s culture. Already his exception, Pat Gelsinger, thought he had been lost, and Lip-Bu so wants to recover it, although time will say if more dismissals are the best option for it. Only last year, Intel eliminated 15,000 jobs.
He wants to reverse the situation in Intel, which has been giving market share for years in favor of his rivals. The company, in addition, has lost its technological level, and has difficulty following the swim of Nvidia, among others, in the field of computing and components prepared to work with artificial intelligence, a field they have arrived late. This has led to the fact that in the last three years their sales have dropped, and Intel has registered losses.
Despite taking about a month in office, it has already taken several measures to redirect the situation. Among them, the replacement of several managers, in addition to having plans and agreements to detach themselves from divisions that are not crucial to achieve their objectives. Only a few days ago Intel reached an agreement to sell 51% of the shares of the Silver Lake Management Investment Fund.
They have also paused many of their expansion plans, among which are the construction of a plant in Magdeburg (Germany) and another in Ohio (United States), which was going to be the largest chip production plant in the world when it came into operation. A few days ago rumors arose that I was negotiating to implement a collaboration with TSMC, but everything indicates that these conversations have not come to fruition.
In addition, the company needs to take steps to replace the engineering talent that has been losing, in addition to improving its balance, and optimizing and adapting its manufacturing processes to meet the needs that its customers may have. This was stated by his own CEO at the Intel Vision 2025 event.
It is likely that during the presentation of Intel’s quarterly results, which will take place this Thursday, so offer some more details of its future strategy for the company. Of course, nobody expects surprising results with respect to the previous ones. The worst of its fall in sales and income already seems to have happened, although No one expects their sales levels to recover in the short term. In fact, if they get it, you may take several years to do so.
