Latest news with #IntelVision
Yahoo
5 days ago
- Business
- Yahoo
Intel to lay off up to 20% of Intel Foundry workers
Intel will begin a new round of layoffs next month. The semiconductor giant plans to lay off 15% to 20% of workers in its Intel Foundry division starting in July, according to an internal memo originally reported on by The Oregonian. Intel Foundry designs, manufactures, and packages semiconductors for external clients. It's unclear how many workers this will directly impact. Intel's total workforce was 108,900 people as of December 2024, according to the company's annual regulatory filing. TechCrunch reached out to Intel for more information. This news is not a particular shock. Since Intel's CEO Lip-Bu Tan took the helm in March, he's indicated several times that the company needs to refocus on its core business units, flatten its organization structure, and return to being an engineering-first company. Rumors of these specific layoffs began swirling in April. Tan also told Intel's customers it would spin off its noncore units at the company's Intel Vision conference in March. Intel laid off 15% of its staff, around 15,000 employees, last August. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
5 days ago
- Business
- Business Insider
‘Even Noah May Not Save This Ship,' Says Top Investor About Intel Stock
In recent years, chip stock Intel (NASDAQ:INTC) has struggled with a bloated cost structure, inconsistent execution, and falling behind rivals like Nvidia, AMD, and TSMC in both innovation and market leadership. Long-term investors are now pinning their hopes on new CEO Lip-Bu Tan, who has been tasked with turning the chip giant's fortunes around. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Tan's appointment has been applauded in the industry, with many viewing him as the right person to lead a much-needed overhaul. He has wasted no time in making changes, launching a campaign to reduce bureaucracy and streamlining Intel's inflated middle management in order to sharpen cost efficiency. Given how bloated Intel's cost structure had become, top investor JR Research, who is among the top 1% of TipRanks' stock pros, thinks the move is not just important – it's a fundamental step toward helping INTC catch up with top semiconductor rivals like Nvidia, AMD and TSMC. However, even with Tan at the helm, doing so will be extremely difficult. 'Notwithstanding Tan's undisputed semiconductor pedigree,' says JR, 'reigniting the fortunes of the former King of semis is easier said than done.' So far, the market seems to agree. INTC stock has continued to trail its chipmaking peers since peaking in early 2025, a sign that investors remain skeptical of a near-term turnaround. In contrast, the top holdings of the VanEck Semiconductor ETF – namely Nvidia, AMD, and Broadcom – have either reclaimed or surpassed (in Broadcom's case) their 2025 highs, highlighting the market's clear skepticism toward Tan's turnaround narrative. According to JR, there are just too many issues to contend with. The company is grappling with deeply rooted structural, geopolitical, and technological challenges, making the idea of a swift turnaround under Tan 'arguably not justified.' To address these hurdles, Tan has outlined a roadmap at major events such as Intel Vision and Intel Foundry Direct Connect, presenting new strategic goals and performance targets. Yet, as JR notes, one critical issue remains untouched: the separation of Intel's foundry business from its core product and design units, a move many see as vital to realigning focus and unlocking value. While JR isn't questioning Tan's capability to revamp Intel Foundry and execute a massive CapEx plan to compete more effectively with TSMC, the reality is that TSMC has already secured a commanding lead in AI chip manufacturing. With Nvidia among its largest clients, the gap between the two continues to grow, casting further doubt on how quickly Intel can reassert itself in the AI race, or whether it ever truly will. For JR, then, it's best to stay on the sidelines for now. Hence, the 5-star investor rates INTC stock a Hold (i.e., Neutral). (To watch JR Research's track record, click here) That take resonates with Wall Street's analyst community: based on 26 Holds, 4 Sells, and just 1 Buy, the stock carries a Hold consensus rating. According to the average price target of $21.30, shares are expected to stay relatively flat over the next year. (See INTC stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Hindustan Times
23-04-2025
- Business
- Hindustan Times
Intel to announce plans this week to cut over 20% of staff
Intel Corp. is poised to announce plans this week to cut more than 20% of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter. The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private. It would be the first major restructuring under new Chief Executive Officer Lip-Bu Tan, who took the helm last month. The cutbacks follow an effort last year to slash about 15,000 jobs — a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year. A representative for Intel declined to comment. Follow the The Big Take daily podcast on Apple, Spotify or anywhere you listen. Intel shares rose as much as 3.5% in premarket trading before New York exchanges opened on Wednesday. The stock has declined about 43% in the past 12 months and closed at $19.51 on Tuesday. Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The Santa Clara, California-based company lost its technological edge and has struggled to catch up with Nvidia Corp. in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink. Tan, a veteran of Cadence Design Systems Inc., has vowed to spin off Intel assets that aren't central to its mission and create more compelling products. Last week, the company agreed to sell a 51% stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal. Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Tan said last month at the Intel Vision conference. The company is scheduled to report first-quarter results on Thursday, giving Tan an opportunity to lay out more of his strategy. Though the worst of Intel's revenue declines are now behind it, according to Wall Street estimates, analysts aren't projecting a return to its previous sales levels for years, if ever. The 65-year-old executive was hired after last year's ouster of CEO Pat Gelsinger, who struggled to execute his own turnaround bid for Intel. He had embarked on a costly effort to expand the company's factory network — and sought to turn Intel into a made-to-order chip manufacturer. But Intel has now delayed much of its expansion effort, including plans for an Ohio facility that was once expected to become the world's largest chip production hub. Intel also had been poised to be the biggest beneficiary of money from the 2022 Chips and Science Act, but that program is now in flux under President Donald Trump. A manufacturing partnership with Taiwan Semiconductor Manufacturing Co. — the source of investor speculation in recent months — also seems less likely to happen. TSMC CEO C. C. Wei said last week that the company would remain focused on its own business. Along the way, Intel missed out on the most lucrative new field for the chip industry in decades. The company, which long dominated the market for personal computer and data center processors, was slow to respond to the shift to AI. That upheaval allowed Nvidia to grow from a niche player into the world's most valuable semiconductor company — with revenue that now eclipses Intel's sales. Gelsinger himself admitted that the company had lost its competitive spirit and expressed frustration with the speed at which it reacted to a changing market. He wasn't given the time he'd said he would need to do something about that. Tan, in his first public appearance as CEO last month, said the turnaround would take time and wouldn't be easy. 'It won't happen overnight,' he said. 'But I know we can get there.' (Updates with premarket share reaction in fifth paragraph.)
Sunday World
23-04-2025
- Business
- Sunday World
Hundreds of Irish jobs at risk as tech company Intel to cut 20pc of global workforce
The move looks likely to affect some of the 5,000 employees at the company's Leixlip site, although the company has not yet clarified the position in relation to Kildare-based staff Intel is poised to announce plans this week to cut more than 20pc of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, it is understood. The move looks likely to affect some of the 5,000 employees at the company's Leixlip site, although the company has not yet clarified the position in relation to Kildare-based staff. Intel first set up in Ireland in 1989 and has invested over €30bn in its Leixlip campus, making it one of the most significant of the many multinationals – many from the US – that have located here. The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to a source, who asked not to be identified because the plans are private. It would be the first major restructuring under new chief executive officer Lip-Bu Tan, who took the helm last month. The cutbacks follow an effort last year to slash about 15,000 jobs with a round of layoffs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year. A representative for Intel declined to comment. Earlier this month, Intel scuppered reports that it is to begin high-volume production of the company's newest and most advanced chips at its Fab 34 facility in Leixlip this year. Online industry reports had claimed that the Leixlip semiconductor facility was to become the first Intel site outside of the US to shift to high-volume production of certain high-end chips that are used for artificial intelligence (AI) and data centres. A new facility in Arizona is currently preparing to begin high volume production of Intel's most advanced chip – the 18A. An Intel spokesperson confirmed to the Irish Independent that Fab 34 in Leixlip has the technical capability to produce 18A chips and did not rule out that it would do so in the future. Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The Santa Clara, California-based company lost its technological edge and has struggled to catch up with Nvidia in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink. Tan, a veteran of Cadence Design Systems, has vowed to spin off Intel assets that aren't central to its mission and create more compelling products. Last week, the company agreed to sell a 51pc stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal. Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Tan said last month at the Intel Vision conference. The company is scheduled to report first-quarter results on Thursday, giving Tan an opportunity to lay out more of his strategy. Though the worst of Intel's revenue declines are now behind it, according to Wall Street estimates, analysts aren't projecting a return to its previous sales levels for years, if ever. The 65-year-old executive was hired after the ousting last year of CEO Pat Gelsinger, who struggled to execute his own turnaround bid for Intel. He had embarked on a costly effort to expand the company's factory network and sought to turn Intel into a made-to-order chip manufacturer. But Intel has now delayed much of its expansion effort, including plans for an Ohio facility that was once expected to become the world's largest chip production hub. Intel also had been poised to be the biggest beneficiary of money from the 2022 Chips and Science Act, but that programme is now in flux under President Donald Trump. A manufacturing partnership with Taiwan Semiconductor Manufacturing Co, the source of investor speculation in recent months, also seems less likely to happen. TSMC CEO CC Wei said last week that the company would remain focused on its own business. Along the way, Intel missed out on the most lucrative new field for the chip industry in decades. The company, which long dominated the market for personal computer and data centre processors, was slow to respond to the shift to AI. That upheaval allowed Nvidia to grow from a niche player into the world's most valuable semiconductor company with revenue that now eclipses Intel's sales. Gelsinger himself admitted that the company had lost its competitive spirit and expressed frustration with the speed at which it reacted to a changing market. He wasn't given the time he'd said he would need to do something about that. Tan, in his first public appearance as CEO last month, said the turnaround would take time and wouldn't be easy. "It won't happen overnight," he said. "But I know we can get there."
Irish Times
23-04-2025
- Business
- Irish Times
Intel to announce plans this week to cut over 20% of staff
Intel is poised to announce plans this week to cut more than 20 per cent of its staff, aiming to eliminate bureaucracy at the struggling chipmaker, according to a person with knowledge of the matter. The move is part of a bid to streamline management and rebuild an engineering-driven culture, according to the person, who asked not to be identified because the plans are private. It would be the first major restructuring under new chief executive Lip-Bu Tan, who took the helm last month. The cutbacks follow an effort last year to slash about 15,000 jobs – a round of lay-offs announced in August. Intel had 108,900 employees at the end of 2024, down from 124,800 the previous year. A representative for Intel declined to comment. READ MORE The company's Irish operation – the €17 billion Leixlip facility – is its biggest outside the US and is seen as 'critical' to reversing the slide in the once-dominant chipmaker's fortunes, according to sources close to the company. Sources said earlier this year that cutbacks in Ireland had, in the main, been implemented in the third quarter of last year. Intel is one of the State's biggest employers, employing 4,900 staff mainly at its Leixlip plant, which includes its new Fab 34 chipmaking facility. Mr Tan is aiming to turn around the iconic chipmaker after years of Intel ceding ground to rivals. The company lost its technological edge and has struggled to catch up with rival Nvidia in artificial intelligence computing. That contributed to three straight years of sales declines and mounting red ink. Mr Tan, a veteran of Cadence Design Systems, has vowed to spin off Intel assets that aren't central to its mission and create more compelling products. Last week, the company agreed to sell a 51 per cent stake in its programmable chips unit Altera to Silver Lake Management, a step toward that goal. Intel needs to replace the engineering talent it has lost, improve its balance sheet and better attune manufacturing processes to the needs of potential customers, Mr Tan said last month at the Intel Vision conference. The company is scheduled to report first-quarter results on Thursday, giving Mr Tan an opportunity to lay out more of his strategy. Though the worst of Intel's revenue declines are now behind it, according to Wall Street estimates, analysts aren't projecting a return to its previous sales levels for years, if ever. The 65-year-old executive was hired after last year's ouster of CEO Pat Gelsinger, who struggled to execute his own turnaround bid for Intel. He had embarked on a costly effort to expand the company's factory network – and sought to turn Intel into a made-to-order chip manufacturer. But Intel has now delayed much of its expansion effort, including plans for an Ohio facility that was once expected to become the world's largest chip production hub. Intel also had been poised to be the biggest beneficiary of money from the 2022 Chips and Science Act, but that programme is now in flux under president Donald Trump. A manufacturing partnership with Taiwan Semiconductor Manufacturing Co – the source of investor speculation in recent months – also seems less likely to happen. TSMC chief executive CC Wei said last week that the company would remain focused on its own business. Along the way, Intel missed out on the most lucrative new field for the chip industry in decades. The company, which long dominated the market for personal computer and data centre processors, was slow to respond to the shift to artificial intelligence. That upheaval allowed Nvidia to grow from a niche player into the world's most valuable semiconductor company – with revenue that now eclipses Intel's sales. Mr Gelsinger himself admitted that the company had lost its competitive spirit and expressed frustration with the speed at which it reacted to a changing market. He wasn't given the time he'd said he would need to do something about that. Mr Tan, in his first public appearance as CEO last month, said the turnaround would take time and wouldn't be easy. 'It won't happen overnight,' he said. 'But I know we can get there.' – Bloomberg
