intel plans significant layoffs as 20% of workforce at risk
Intel employees worldwide received disappointing news. According to Bloomberg, the IT industry giant is preparing group redundancies, with 20% of the workforce expected to lose their jobs. At the end of 2024, the company employed just under 109,000 people, compared to 124,800 the previous year.
On Thursday, Intel is set to summarise its financial results for the first quarter of 2025. According to Bloomberg sources, this will likely be an opportunity for the company's CEO, Lip-Bu Tan, to announce plans for further workforce reductions by 21%.
Last year, Intel bid farewell to several thousand employees. If the agency's information is confirmed, the new wave of layoffs will affect over 20,000 employees. The aim is to improve management and "rebuild a culture based on engineering." It's worth mentioning that Intel also has branches in Poland.
Bloomberg highlights that the company from Santa Clara, California, missed the crucial market opportunity for the development of artificial intelligence. As a result, the giant lost its technological edge to Nvidia.
Lip-Bu Tan, at last month's Intel Vision conference, stated that the company needs to replace the lost engineering talent, improve its balance sheet, and better tailor its production processes to the needs of potential customers.
Poles rushed to buy Thermomixes. This is how much a seller earns
Pat Gelsinger, Intel's former CEO, admitted last year that the company lost its competitive spirit. He also expressed frustration with the speed at which it responded to the changing market.
Layoffs in the IT industry
Intel is not the only company in the IT industry that is reducing its staff numbers following the coronavirus pandemic. A recent example is the French company Atos, which employs about 7,000 people in Poland and plans job cuts at its Bydgoszcz branch, potentially affecting up to 200 workers.
- The pandemic sparked a boom in all kinds of services – streaming services, applications, large e-commerce, and all solutions serving large corporations. It's clear that a correction has arrived, specifically its next, possibly fourth wave. A few years ago, there was an urgent need for programmers, and a large number of them too. In my opinion, this trend is now reversing - assesses Maciej Motławski, owner of ITMakeovers in Bydgoszcz, in a conversation with money.pl.
Are we seeing an employer’s market? - A candidate who applied for an internship with us openly admitted that they were refused by 50 companies. If 50 companies refuse to accept even for unpaid internships, that probably indicates something significant - points out Motławski.
