Another 21,000 Employees To Lose Their Jobs, As International Chip Manufacturer Starts Restructuring

• A global chip manufacturing firm is finally launching restructuring plans after a long period of declining revenue
• The first step of the plan will see about 21,000 employees lose their jobs in a bid to cut down operational costs
• The company has also given details of the restructuring, which includes rebuilding lost engineering talent

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

International chip manufacturer, Intel Corporation has started a new restructuring that will see about 20% of its workforce lose their jobs.

This is one of the first major moves coming from the new Chief Executive Officer, Lip-Bu Tan since taking over the position one month ago, after the exit of Pat Gelsinger.

Tan says that the move is necessary as Intel needs a fresh start, after years of lagging behind other major competitors in the AI chip manufacturing space.

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This restructuring round will translate into the layoff of about 21,000 employees, after a previous round in 2024 led to the loss of 15,000 jobs.

Bloomberg reports that the last lay-offs, done to cut down costs, reduced the workforce from 124,800 to 108,900 employees.

Job losses are becoming more rampant across the world, as companies move to adjust to the times. Even in Nigeria, about 44% of companies laid off staff in 2024, and there are projections that more will happen in 2025.

Even Google Inc. has not been left out of the layoffs that have recently plagued many companies, including tech and manufacturing giants.

Intel releases details about restructuring moves

According to the announcement, the global chip manufacturer is looking to edge out rivals like Nvidia, and get back into profitability.

As part of the restructuring, Intel recently sold 51% controlling shares in Altera, its programmable chip unit, to a private equity firm, Silver Lake.

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The new CEO stressed that despite the layoffs, Intel would be striving to rebuild the lost engineering talent, rejig manufacturing processes, and get its financials on solid footing.

Tan acknowledged in his first public speech that the restructuring would come with its own challenges, but he was willing to make the bold moves.

Analysts are on the lookout for the Q1 results to be released on Thursday, in the hopes of gleaning what the prospects are for a full recovery after a long period of revenue decline.

Report predicts lay-offs in Nigeria in 2025

In related news, Legit.ng reported that Nigeria’s labour market will experience major disruptions in 2025 that could lead to significant job losses.

This is part of the 2025 projections in a report from the Nigerian Economic Summit Group (NESG), titled “Nigeria’s Private Sector in 2025: Adapting to Economic Uncertainty for Growth and Resilience.”

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The report notes that much of these challenges will be driven by economic indicators like high operation costs and lower sales resulting from a decline in consumer spending, structural weaknesses within companies, and an uptick in automation trends.

Source: Legit.ng