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Intel Set to Announce Plans to Cut Over 20% of Staff

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Bloomberg Apr 23 21:24 · 12.9k Views

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  • 00:00 When it comes to tech, the other story that we've been following very closely is the struggling trip maker Intel.
  • 00:06 And Bloomberg has learned that Intel is poised to cut more than 20% of its workforce as the new CEO tries to bring back an engineering driven culture.
  • 00:16 So for more on this, let's bring in our Asia tech reporter, Jane Lanny.
  • 00:20 Lee.
  • 00:21 Jane, First off, 20%
  • 00:24 if this comes to pass, it's quite
  • 00:26 a sizable reduction, but what is actually the
  • 00:31 the goal
  • 00:32 of a restructuring of this magnitude,
  • 00:38 right?
  • 00:38 It's I mean, it's hard to say if these cuts go deep enough.
  • 00:41 It is a huge chunk
  • 00:43 if it's announced at this level and
  • 00:46 but in comparison, you know
  • 00:48 NVIDIA which doesn't have
  • 00:51 chip making facilities, they just designed them.
  • 00:54 So they have about 31,000 employees.
  • 00:57 AMD has about 28,000 employees.
  • 01:00 Again, they only design chips and TSMC, which is a contract manufacturer that makes the chips for these,
  • 01:07 you know, other fabulous, as we say design
  • 01:11 chip design houses have
  • 01:13 about 76,000.
  • 01:14 So
  • 01:16 you know, Intel has
  • 01:18 design and it has the foundry business, which is
  • 01:23 its business for making chips for itself and for others.
  • 01:26 So
  • 01:27 you know it
  • 01:28 it does bring it under the level of a TSMC plus an NVIDIA
  • 01:34 example.
  • 01:34 But
  • 01:36 yeah, it'll, it remains to be seen if, if, if that will go deep enough considering
  • 01:42 some of the difficulties Intel faces, especially
  • 01:45 with a lot of its sales dropping and challenges with new products etcetera.
  • 01:51 OK, Jane, thank you so much for getting us up to speed.
  • 01:53 The company reports I believe on Thursday.
  • 01:55 So we'll see if they do manage to confirm that going into that.
  • 01:58 And
  • 01:59 certainly more interesting point there as well as Jane was just underscoring there, is this simply trimming the fat
  • 02:04 back to this reversion to the mean that we see in the industry or is this a
  • 02:09 again a change of strategy
  • 02:11 or or maybe a bit of both.
  • 02:12 Anyway, check that out.
  • 02:13 The story out?
  • 02:13 Our scoop, of course, on the Bloomberg Terminal.