Semiconductor maker Intel will lay off thousands of workers

American technology company Intel has planned to reduce its workforce by more than 20 percent. Its aim is to eliminate bureaucracy and make management balanced. This will be the first major restructuring since Intel’s new Chief Executive Officer, Bu Tan, took charge last month.

In a Bloomberg News report, quoting a source familiar with the company’s plans, it has been said that Intel’s target is to re-create a culture focused on engineering. Last year also, the company had informed about laying off about 15,000 workers. The total number of Intel workers is about 1,08,000. The company’s stock has fallen by about 43 percent in the last 12 months. Intel’s stock closed at around $ 19.50 on Tuesday. In the last few years, rivals like Nvidia have dented the company’s market share in the semiconductors.

It is also lagging behind in the Artificial Intelligence (AI) segment. The company’s sales have declined in the last three years. Tan, who spent many years at Cadence Design Systems, has planned to separate Intel’s assets that are not according to his vision. Last week, the company informed about selling 51 percent stake in its programmable chips unit Altera to Silver Lake Management.

In a recent conference, Tan had said that Intel needs to improve its balance sheet and improve the manufacturing process. The company’s current financial first quarter results will be announced on Thursday. However, analysts believe that the worst phase of revenue reduction for the company is over. About two years ago, Intel cut the salaries of management and senior staff including the CEO. This decision was taken due to the reduction in the company’s revenue and profit. The base pay for the company’s mid-level workers was cut by about five percent and for the then Chief Executive Pat Gelsinger by 25 percent. Apart from this, the salary of the company’s executive leadership team was reduced by 15 percent.