Intel to announce plans this week to cut over 20% of staff

Peter Burke (historian)enterprise

I note the publication of Intel’s Q1 financial results last night and comments from CEO Lip Bu Tan that they were ‘a step in the right direction’, while also confirming there will be a reduction in Intel’s workforce globally,

Mr Burke said in a statement

I strongly believe we can reduce our costs while securing our future,

Tan said

The economic landscape has become increasingly uncertain, driven by shifting trade policies, persistent inflation and increased regulatory risk,

Intel chief financial officer David Zinsner said during an earnings call

As we refocus on engineering, we will also remove organizational complexity,

Tan said in the note to staff

I'm talking about the opportunity to fundamentally reinvent an industry icon. To pull off a comeback that will be studied in business schools for generations to come. To create new technologies and deploy them at scale to change the world for the better,

Intel CEO Lip Bu-Tan said

Peter Burke (historian)enterprise

While we await further specifics on potential downsizing, which is an incredibly anxious time for Intel’s staff, it is positive that the company has stated they will continue to focus investment on their core business, the manufacturing of semiconductor products,

Mr Burke said

It's going to be hard. It will require painful decisions. But we will make them knowing it's what we must do to serve our customers better as we build a new Intel for the future - and I have great confidence in the power of our team and our people to make it happen."

he added

The biggest risk we see is the impact of a potential pullback in investment and spending, as businesses and consumers react to higher costs and the uncertain economic backdrop,

Zinsner said

The macroeconomic concerns and tariffs have everybody kind of hedging their bets in what they need to have from an inventory perspective,

Holthaus said on the earnings call

The very fluid trade policies in the U.S. and beyond, as well as regulatory risks, have increased the chance of an economic slowdown, with the probability of a recession growing,

Zinsner said on the company's quarterly earnings call on Thursday

The first quarter was a step in the right direction, but there are no quick fixes as we work to get back on a path to gaining market share and driving sustainable growth,

Tan said in a statement

The current macro environment is creating elevated uncertainty across the industry, which is reflected in our outlook,

CFO David Zinsner said in a statement

Intel is taking actions to drive better, more efficient execution across the business. The plan includes streamlining the organization, eliminating management layers,

the company said in a statement