Questions continue to plague Intel’s turnaround plans, with the company announcing layoffs in its Cloud and GPU divisions.
Intel is amid an an attempted turnaround under CEO Pat Gelsinger that has seen the company re-focus on its core semiconductor manufacturing business. As part of the company’s turnaround, there are key segments Intel has been focusing on, with cloud and GPU being two such segments.
Despite their importance to the company’s plans, according to CRN, that hasn’t stopped Intel from including staff in those two departments in its latest round of layoffs.
CRN says the layoffs affect a total of 315 people in California:
The affected roles in those areas consisted of 11 GPU software development engineers and two graphics hardware engineers, an engineering manager and four engineers working on AI software as well as 28 engineers and architects working on cloud software and solutions.
The layoffs also claimed a general manager as well as an Intel fellow, the latter of which is the most prestigious title that can be given to a technical employee. CRN was unable to identify them.
Intel’s turnaround has increasingly faced an uphill battle, potentially tarnishing CEO Pat Gelsinger’s legacy in the process. The company turned in a surprise $500 million loss in one of its quarters last year, and its first-quarter 2023 results included the worst loss in the company’s history.
The fact that Intel is laying off the very type of engineers that may be crucial to its turnaround is sure to raise additional concerns.