Intel Corporation has announced plans to lay off between 15% and 20% of its workforce in the Intel Foundry division. Taking such a stance would be a big change for the company. Its goal is to simplify the operations and focus on what it does best. Their intention is to begin these layoffs in July. This detail was lifted from an internal memo made public that The Oregonian reported on first.
According to the internal memo, those layoffs are just the beginning. This decision tracks with the company’s broader push to increase efficiency and shift resources around. After serious setbacks within Intel’s new Foundry division it became clear that a reset in its workforce composition was necessary, leading to this decision. Intel continues to downsize so it can focus its talent – and money – on what’s most important. This strategic shift is to improve the company’s long-term financial success.
Back in March, CEO Lip-Bu Tan was onstage at the Intel Vision conference. He announced bold plans for the company to spin off its various noncore units. Intel needed to make this announcement to bring more customer granularity and color to its strategic direction. They focus on deepening their established presence in core business areas with the highest long term growth potential. By culling unrelated units, like its autonomous driving business, Intel aims to focus its resources on its core chipmaking business.
This recent decision to lay off the majority of the Intel Foundry division’s workforce is pretty clearly in line with those strategic objectives. As the shipbuilder maneuvers within a dramatic market environment shift, the company continues to look for efficiencies and ways to be more competitive. The need for the upcoming layoffs shines a light on bigger technology industry trends. To address economic pressures and market transformation, companies are aggressively pursuing new and innovative business models.
As the future balance of semiconductor manufacturing for everything from smartphones to mobile devices to computing applications to defense applications. Intel’s response Intel is making these layoffs as part of an effort to improve and secure the company’s position in the semiconductor sector. Along with that, the company is addressing internal operational silos.
