Intel Lay Off 20% as It Outsources Marketing to AI and Accenture
As part of a big plan to cut costs and reorganize, Intel Lay Off 20% as Company Turns to AI and Accenture for Marketing of its factory workers. The company’s global marketing operations will also see big changes. The big chipmaker has said that it will hire Accenture to handle most of its marketing tasks. It will rely heavily on AI tools to make things run more smoothly and more efficiently.
Major Workforce Cuts Confirmed
The decision, officially confirmed by Intel on June 20, signals substantial job losses across the company’s marketing divisions. Although Intel has not released exact layoff numbers, internal communications indicate that affected employees have already been informed and may lose their jobs by July 11.
This announcement follows earlier warnings by Intel’s new CEO, Lip-Bu Tan, who took over leadership in March. He had previously hinted at significant workforce reductions to turn around Intel’s struggling business. The company acknowledged in a memo to employees that major changes to team structures were imminent, and only “lean teams” would remain in-house.
AI and Accenture to Lead Marketing Overhaul
Intel’s leadership believes that outsourcing to Accenture, combined with AI integration, will simplify processes, cut costs, and improve customer engagement. The company’s statement described Accenture as a “longtime partner and trusted leader” capable of helping Intel achieve greater agility and efficiency.
Some employees may even be asked to train Accenture staff during the transition period, as the new teams take over critical marketing functions.
A Rapid Restructuring Under Lip-Bu Tan
Lip-Bu Tan, who has worked in the semiconductor industry for a long time but is new to Intel, has already started to change the company. His ambitious plan to restructure goes far beyond just marketing. It calls for getting rid of a lot of management levels and cutting thousands of manufacturing jobs, which could affect 20% of workers in some units.
The bold moves reflect Tan’s urgent effort to reverse Intel’s recent decline. The company has been losing market share in its core businesses, including personal computers and data centers, while missing out on the explosive growth of AI chips dominated by competitors like Nvidia.
Intel’s financial performance has been underwhelming in recent years. Its revenue has plunged by one-third, and the company currently operates at a loss. Feedback from customers and internal assessments suggest Intel has fallen behind in decision-making speed, while its rivals have adapted more quickly to evolving market demands.
By outsourcing marketing and leveraging AI, Intel hopes to modernize its approach and close the competitive gap. However, the shift represents a major gamble, raising questions about the future role of humans in corporate marketing as automation and external contractors take over tasks traditionally handled in-house.
