Intel Corporation (NASDAQ:INTC) reportedly plans to reduce more than 20% of its workforce as part of a major overhaul under new CEO Lip-Bu Tan.
What Happened: The layoffs are targeted toward reducing bureaucracy and streamlining Intel's focus on engineering excellence, reported Bloomberg on Tuesday, citing a person with knowledge of the matter.
Tan was appointed the new CEO of Intel last month. This overhaul would mark the first major restructuring under him.
Last year, Intel revealed plans to slash 15,000 jobs. The company had 108,900 employees by the end of last year, the report noted.
Intel did not immediately respond to Benzinga's request for comments.
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Why It’s Important: Last week, Reuters cited an internal memo from Intel and reported that Tan has decided that data center, AI, and personal computer chip divisions will now report to him directly.
"It’s clear to me that organizational complexity and bureaucratic processes have been slowly suffocating the culture of innovation we need to win," he reportedly said in the memo, adding, "It takes too long to make decisions. New ideas are not given room or resources to incubate. And unnecessary silos lead to inefficient execution."
Intel is scheduled to report its earnings on Thursday after the market closes.
Price Action: Intel shares rose 3.56% on Tuesday, closing at $19.51. The stock added another 2% in after-hours trading, climbing to $19.90. Year-to-date, the chipmaker is down 3.51%, according to Benzinga Pro.
Intel currently has a growth score of 3.59% based on Benzinga Edge Stock Rankings. Click here to see how it compares to other top semiconductor stocks.
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