Chipmaker Intel said it is to cut jobs in a bid to streamline the organisation and eliminate management layers to enable faster decision-making.
The company did not announce a specific number of layoffs, but this week Bloomberg reported that it is planning to cut 20% of its global workforce.
It is not known what impact the job cuts would have on Intel’s Irish operation, which employs 4,900 people.
In its latest set of financial results, Intel gave a weak forecast for the current period that came in below analysts’ estimates.
It sent the company’s shares lower in extended trading.
In a memo to employees, the Intel CEO Lip-Bu Tan said the company needs to get back to its roots, empower engineers and remove organisational complexity.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” he said.
“As I said when I joined, we need to make some very hard decisions to put our company on a solid footing for the future.”
“This will begin in Q2 and we will move as quickly as possible over the next several months,” he added.
Lip-Bu Tan also said that hybrid workers will be required to be in the office four days a week, an increase of one day.
“The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,” the Intel CEO said.
“I am taking swift actions to drive better execution and operational efficiency while empowering our engineers to create great products,” he added.
