Semiconductor Maker Intel to Let Fall Over 20 pc of Group of Workers, Microsoft, Nvidia, Samsung

American technology company Intel plans to reduce its workfoses more than 20 percent. It aims to eliminate bureaucracy and balance the management. This will be the first major restructuring since the new Chief Executive Officer of Intel, Bu Tan last month.

In the report of Bloomberg Information, a source, who has been aware of the company’s plan, has been quoted as saying that Intel’s target is to rebuild the focus on engineering. Last year too, the company had informed about retrenchment of about 15,000 workers. The total number of workers of Intel is around 1,08,000. The company’s stock has declined by about 43 percent in the last 12 months. Intel’s stock closed at $ 19.50 on Tuesday. In the last few years, rivals like NVIDIA have made a dent in the company’s share in the market of semiconductors.

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

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