Intel has informed its marketing staff of plans to transfer many of their roles to Accenture. The new CEO, Lip-Bu Tan, wants to reduce costs and improve business operations.
The company claims that Accenture, with the help of artificial intelligence, is better able to reach customers. Most marketing employees will be informed of Intel’s decision by July 11 at the latest.
In an internal memo, Intel said that the transition of marketing and operational functions will have a major impact on team structures. Staff reductions are possible as a result. Only small teams will remain, according to the document seen by The Oregonian/OregonLive.
Intel confirms collaboration with Accenture
Intel did not say how many jobs it is cutting. It is also silent on the number of people working in its marketing department worldwide, including in Oregon. However, the company confirmed its collaboration with Accenture in a statement to The Oregonian/OregonLive.
Intel is taking steps to become a leaner, faster, and more efficient company. Part of this involves modernizing its digital capabilities to better serve customers and strengthen the brand. According to Intel, Accenture is a long-standing partner, and the company looks forward to expanding the collaboration.
Tan (photo), CEO since March, is an experienced executive in the semiconductor industry but comes from outside Intel. He is the company’s first CEO without previous work experience at the manufacturer. It appears that he is radically changing Intel’s way of working. In April, Tan already indicated that there would be major layoffs. The details of those plans are now becoming clear within Intel’s various business units.
Thousands of jobs lost in production department
Intel previously informed production department staff about possible layoffs of up to 20 percent. That would amount to thousands of jobs. Tan is implementing a reorganization with the aim of accelerating innovation at Intel, including by cutting jobs and reducing management layers. Intel indicated that outsourcing marketing activities is part of this broader reorganization.
The company informed marketing employees that, although lower costs will be a logical consequence of this step, the main reason is that the current model for approaching the market needs to be adapted to what customers expect. They were told that decision-making is too slow, programs are too complex, and competitors are acting faster.
Intel is trying to recover from years of technological backwardness, which caused it to lose market share. The company also fell behind in the development of AI. Its revenue has fallen by a third in recent years, leading to losses and an uncertain future.
According to this week’s announcement, Intel wants to work with Accenture to deploy AI-driven technologies. It hopes this will enable it to act faster, simplify processes, apply best practices, and control spending at the same time.
It is also suggested that some employees may have to train their successors at Accenture and teach them about Intel processes during the transition.