CEO Lip Bu Tan speaks at a conference in San Jose (California) on April 29 - Photo: REUTERS
The major restructuring begins with the largest layoffs in years. According to Reuters, on July 24, Intel officially announced plans to cut about 15% of its global workforce (equivalent to nearly 24,000 employees).
Perform "major surgery"
The above plan to cut staff is considered one of the most drastic reforms in the history of this group, taking place in the context of continuous decline in business activities and increasingly fierce competition.
In a memo to all employees, CEO Lip Bu Tan emphasized his commitment to radically changing Intel's investment mindset: "No more blank checks. Every investment must have a clear economic reason. We will only build what customers need, when they need it, and win back their trust with consistent execution."
Intel's goal is to further reduce its workforce to 75,000 by the end of this year, or 22% below the end of 2024, through voluntary redundancies and other means.
According to CFO David Zinsner, this sweeping restructuring takes a "major surgical" approach, focusing on eliminating middle management layers, to streamline the apparatus and speed up the decision-making process.
In parallel with the wave of staff cuts under the leadership of CEO Lip Bu Tan, Intel is implementing a series of large-scale restructuring measures. Specifically, the company has canceled factory expansion projects in Poland and Germany, and slowed down the construction of a large factory in Ohio (USA).
At the same time, Intel is consolidating its chip packaging facility in Costa Rica with existing facilities in Vietnam and Malaysia, aiming to optimize costs and increase flexibility in the global supply chain.
Beyond infrastructure, the restructuring plan also includes accelerating the production of the 18A process (1.8 nanometer chips) exclusively for internal products like Panther Lake. Meanwhile, the 14A process (1.4 nanometer chips) will continue to be developed if there are enough external customers - otherwise, Intel may withdraw from this contract chip manufacturing business.
CEO Lip Bu Tan has said he will personally review and approve every major chip design to ensure that Intel’s technology strategy does not repeat past mistakes. He hopes that these sweeping changes will breathe new life into Intel, making the company leaner, more disciplined, and more efficient, and more competitive in a rapidly changing technology industry.
Double-edged sword
"It is worrying that Intel feels the need to undertake such a large-scale restructuring, given the rapidly changing market and competitive landscape," said Leonard Lee, founder of NeXt Curve technology group.
In an article published on the technology analysis site Tech News World on July 22, information technology expert Rob Enderle said that initiating a large-scale layoff during a restructuring period is often considered an effective measure for reform. However, behind the immediate benefits, this move has many potential risks to the internal strength of the business - especially a technology corporation that is trying to recover like Intel.
Intel has already undergone a major round of layoffs, with around 15,000 employees (in August 2024). The continued large-scale layoffs risk eroding employee loyalty and making it difficult to retain key talent, which is vital in an industry that requires constant innovation like semiconductors.
Experts also warn about the phenomenon of "Survivor's syndrome", when remaining employees after consecutive layoffs often fall into a state of prolonged stress, disorientation and reduced engagement, directly affecting work productivity and corporate culture.
Another factor that could turn the tables is Intel's move to outsource its artificial intelligence (AI) marketing to technology consulting and services provider Accenture.
While it can help Intel reduce human resource costs and leverage technology to optimize operations, handing over marketing activities to AI can make the brand less personalized, lose connection with users, and lose competitive differentiation.
According to Reuters, in addition to internal risks, Intel is incurring costs of restructuring its workforce of up to $1.9 billion in the second quarter of this year alone. Although the strategy has been clearly announced, Intel itself admits that the roadmap is still in the process of being implemented, even though each decision costs billions of dollars and takes years of research.
Race to regain position
CEO Lip Bu Tan frankly admitted that Intel has passed its peak and is no longer among the world's top 10 semiconductor companies. According to analysts, this decline is the result of years of stagnation and management mistakes, causing Intel to lose its position in the AI chip industry - currently dominated by Nvidia.
At the same time, long-time rivals AMD and TSMC are steadily gaining market share from Intel in PC, server and contract chips. However, Mr. Lip Bu Tan has put his faith in the turnaround prospects, stating: "It will take time, but we see clear opportunities ahead to improve our competitive position, improve profitability and create long-term shareholder value."
Source: https://tuoitre.vn/intel-dai-cai-to-de-tai-sinh-20250725235507171.htm
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