Intel to initialize 3rd wave of layoffs that could affect Taiwan suppliers
Intel will start its third wave of layoffs at the end of June, targeting mainly its worldwide sales and marketing units. The move is expected to affect players in Taiwan’s supply chain, according to industry sources.
In April, Intel announced it will lay off around 12,000 employees worldwide, accounting for about 11% of its overall workforce worldwide. Intel’s first two waves of layoffs focused mainly on the mobile device business and product lines with unsatisfactory performances or lacking business potential.
In addition to reorganizing its product lines, Intel is looking to tighten its channel sales and marketing to help clearly define responsibilities and management coverage.
Meanwhile, Intel will also adjust its reporting system. In the future, branches in each country will report directly to the US headquarters instead of regional headquarters such as Europe, Africa, Asia Pacific or Latin America. First-tier brand vendors such as Hewlett-Packard (HP), Lenovo, Dell, Asustek Computer and Acer will be assigned specific teams at the US headquarters to handle their relationships with Intel.
Smaller vendors will be handled by each country’s branch office which will report back to the US.
The sources believe the adjustments will help Intel become closer to the market and accelerate its pace on new product R&D and time to market. However, the adjustments will necessitate and adjustment period.
Commenting on the news, Intel said that the company is accelerating its transformation from a PC company to one that powers the cloud and billions of smart, connected computing devices. To support its transformation, the company is restructuring its sales organization to drive tighter alignment with Intel’s business units and fuel its growth engines. Customers can expect to see more specialized technical support, faster decision making, and streamlined processes with a strong focus on enabling a consistent and personalized customer experience.