Big tech firm, Intel Corporation’s shareholders on Tuesday, May 6, approved the company’s new equity incentive plan along with Chief Executive Officer (CEO) Lip-Bu Tan’s annual compensation, reported the news agency Reuters.
According to the report, this new equity incentive plan seeks to help the company retain its employees. The shareholders also approved the company’s board of directors, even though three of the members did not stand for re-election.
The big tech firm’s shareholders also rejected three proposals which would make the company rethink its operations in Israel, produce new reports on charitable giving and give shareholders the right to act by written consent, according to the agency report.
Intel restructuring plans
Intel’s CEO announced his key restructuring plans for the chipmaking giant and hinted at the upcoming layoff on Wednesday, April 30. Lip-Bu Tan highlighted how he plans for the company to focus on its operations on its engineering works, which are creating ‘unnecessary bureaucracy’ that is slowing down the firm.
“I’ve been surprised to learn that, in recent years, the most important KPI for many managers at Intel has been the size of their teams. Going forward, this will not be the case,” said the Intel CEO in an official statement.
The upcoming restructuring operation will be the first since Lip-Bu Tan took charge of the firm as the new CEO. Lip-Bu Tan is aiming to make the company “lean” which is likely to help them save time and energy spent on internal administrative work rather than taking the business forward.
“There is no way around the fact that these critical changes will reduce the size of our workforce,” he said.
According to a Bloomberg report, citing people aware of the development on April 23, Intel is preparing to lay off more than 20 per cent of its staff to reduce bureaucracy in the struggling company.
Intel decided to cut 15,000 jobs in August 2024, and as of the year ended 2024, the Big Tech firm had 1,08,900 employees working under it, compared to the 1,24,800 employees in the previous year, as per the agency report.
