Intel Job Cut: Intel, one of the world’s largest companies making computer chip, has been going through a difficult period for the last few years. There were many changes in the company recently. Lip-bo tan was made the new CEO. The hope is that some charisma should be done and the company comes back on track again. Among all these, CEO Lip-Bo Tan has taken many tough decisions. The company has announced that it will print about 24,000 employees this year, which is about one-fourth of its total employees by the end of 2024. The news came during Intel’s second quarter earning report.
According to The Verge report, Intel will now focus on making himself small and more efficient. As part of this strategy, the company has canceled its large factory projects in Germany and Poland. In Costa Rica too, the company is shutting down some of its operations and transferring it to Vietnam. This decision is expected to leave about 2,000 employees in Costa Rica.
CEO Lip-Bo Tan takes tough decisions
Behind these tough decisions is Intel’s new CEO Lip-Bo Tan. He has taken over the reins of the company at a time when the company is lagging behind in its rivals, especially rapidly growing Artificial Intelligence (AI) region. Tan admitted that Intel had spent a lot of money in making new factories without the correct estimate of the demand for chips. Tan said in a call with investors, ‘I do not believe in making things and expecting customers to come. Now we will make what people really need ‘.
Tan also said that he would personally review all major chip designs in future, so that previous mistakes can be avoided. The company says that there will be more changes soon, including a new leadership for its data center division and a better planning to compete in the AI sector.
Preparations continue for the future due to heavy losses to the company
The company has to bear a lot of expenses in this major change. Sorting and restructuring will cost approximately $ 2 billion and the company is still in loss. Intel has lost $ 2.9 billion in this quarter, while he earned a revenue of $ 12.9 billion. By the way, some of Intel’s businesses are going well. Its data center unit, which power to server and cloud services, has increased. But chips made for normal computers are not being sold as before. Nevertheless, Intel says that it is on the way to release new laptop chips by the end of this year and by 2026.