Intel to layoff 20% factory workers, outsource marketing to AI and Accenture
Intel has announced plans to outsource large parts of its global marketing operations to Accenture, supported by artificial intelligence tools, as new CEO Lip-Bu Tan accelerates cost-cutting efforts and restructuring at the struggling chipmaker.
The move, confirmed by Intel on June 20, will lead to substantial job losses across its marketing teams.
While the company has not disclosed exact figures, it has begun informing employees that they may be laid off by 11 July.
The announcement follows earlier warnings by Tan that major workforce reductions were imminent.
Intel said it believes Accenture, using artificial intelligence, will do a better job connecting with customers. It says it will tell most marketing employees by July 11 whether it plans to lay them off.https://t.co/ffN1h1OZ8Y
“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” Intel said in a statement in April. “Accenture is a longtime partner and trusted leader in these areas and we look forward to expanding our work together.”
The company’s internal memo to employees acknowledged that “significant changes to team structures” were coming, and that only “lean teams” would remain in-house.
It also raised the possibility of workers being asked to train their Accenture replacements during the transition.
Intel cited feedback that its decision-making has been slow, programmes overly complex, and that competitors have moved faster in adapting to market demands.
By partnering with Accenture and deploying AI, the company hopes to streamline processes, reduce costs, and enhance customer engagement.
The changes are part of a broader transformation under Tan, who became Intel’s CEO in March.
A semiconductor veteran but an outsider at Intel, he has moved swiftly to reshape the company’s operations.
This includes plans to eliminate management layers and cut thousands of manufacturing jobs, potentially affecting 20% of staff in some units.
Intel will lay off 15% to 20% of its factory workers, memo says#MacroEdge
Intel has struggled in recent years with declining market share in PCs and data centres, as well as missing out on the AI chip boom dominated by rivals.
Its revenue has fallen by a third, and the firm is currently operating at a loss.
The shift to outsourcing core marketing functions signals a high-stakes bet that AI and external contractors can deliver more efficient results — and that traditional roles in corporate marketing may increasingly be handled by machines.