Stocks Drop, Intel Will Lay Off 20 Percent Of Employees

Intel will lay off thousands of employees (photo: dock. Intel)

JAKARTA Intel will cut thousands of employees ahead of first-quarter earnings calls. Reportedly, the company will cut about 20 percent of its total workforce.

According to a Bloomberg report, official information regarding layoffs (PHK) will be shared in the near future. If calculated based on the current number of Intel employees, the chipset giant will cut 21,000 employees.

This is a huge number, but it needs to be done according to Intel CEO Lip-Bu Tan. The person who replaced Pat Gelsinger in March believed that layoffs could 'surface management and build engineering-driven cultural returns'.

Based on the latest data shared at the end of last year, Intel is employing 108,900 employees. With cuts to be made in the near future, Intel will employ less than 100,000 workers.

Actually, cutting employees isn't something new at Intel. The company laid off in August last year, but not as many times as this. At that time, Intel only removed 15,000 employees from various countries.

Companies are also forced to make massive cuts every year due to their unstable state. In the last five years, the company's shares have continued to decline.

The peak is a decrease of up to 67 percent. Therefore, Tan seeks to restore Intel's glory in various ways. In addition to layoffs, Tan also decided to separate Intel's division from being a 'non-core' unit.

Intel is also taking another big step by selling one part of its business. The company sold 51 percent of Altera's semiconductor business to Silver Lake, a private equity company.