Intel is believed to be starting the process of laying off between 15-20% of its factory workers, according to a report by The Oregonian. In a memo seen by The Oregonian, the process of laying off workers will be done globally and will also have an impact on Intel workers in Malaysia. By the end of 2024, Intel will have around 108,000 employees.
When appointed as the new CEO, Lip Bu Tan stated that workforce reductions were necessary to reduce the company's operating costs and ensure its future survival after experiencing huge losses.
Last August, more than 15,000 were laid off with around 2,000 employees in Malaysia affected. Several foundry constructions were also canceled in Europe with the scale of factory expansion operations in Penang also being scaled back.
Intel's failure to compete in the artificial intelligence (AI) chip world, which is currently dominated by NVIDIA, and issues with the Gen-13 and Gen-14 chips caused the company's financial position to be directly affected. It also caused CEO Pat Gelsinger to be forced to resign suddenly in December last year.