Layoffs have increasingly become a new standard in todays corporate environment. Now as per the latest updates Intel is reportedly planning to cut over 20% of its workforce potentially affecting more than 21000 employees. According to a Bloomberg News reported on Tuesday citing a person with knowledge of the matter this decision is part of an effort to simplify the companys operations and reduce bureaucratic inefficiencies. The layoffs are part of a larger strategy aimed at realigning the company with an engineering-focused culture according to the report. Its shares rose more than 4.5% in premarket trading on Wednesday. The layoffs are a major move by new CEO Lip-Bu Tan who took charge last month as he works to turn around the struggling American company after years of setbacks and leadership issues. According to a report by Reuters last month Tan is planning a major overhaul of Intels manufacturing and AI operations. The company lost its lead in chipmaking to Taiwans TSMC (2330.TW) and in recent years failed to capitalize on the surge in demand for AI processors leaving competitors like Nvidia (NVDA.O) to dominate the market. Bad news for employees of this IT company as 21000 to be sacked due to... not Narayana Murthys Infosys Ratan Tatas TCS Wipro Google Microsoft IBM name is... According to a report by Reuters last month Tan was planning a major overhaul of Intels manufacturing and AI operations. The company lost its lead in chipmaking to Taiwans TSMC and in recent years failed to capitalize on the surge in demand for AI processors leaving competitors like Nvidia (NVDA.O) to dominate the market. Last week Reuters reported that Tan was restructuring Intels leadership team and appointed a new AI chief to lead the companys artificial intelligence efforts. However Intels AI plans remain unclear as it has relegated its Falcon Shores chips to internal testing leaving the company without a competitive flagship product in the AI market the report further mentioned. The company had approximately 108900 employees at the end of last year following the announcement of 15000 job cuts in August 2024.