Intel to Slash Marketing Workforce, Outsource Jobs to Accenture in Aggressive AI-Fueled Restructuring

Intel is pushing ahead with one of its most aggressive corporate overhauls in years, announcing plans to outsource a significant portion of its marketing workforce to global consulting firm Accenture.

The move, which is expected to result in significant job cuts, is part of CEO Lip-Bu Tan’s sweeping strategy to cut costs, streamline operations, and reposition the struggling chip giant as a faster, more efficient player in a market increasingly dominated by artificial intelligence.

In a notice sent to employees this week—reviewed by The Oregonian/OregonLive—Intel said it will begin notifying affected marketing staff by July 11, and warned that the transition will bring “significant changes to team structures, including potential headcount reductions.” The company did not say how many jobs would be eliminated, nor how many people currently work in its global marketing division, which includes staff in Oregon and other major Intel locations.

“As we announced earlier this year, we are taking steps to become a leaner, faster and more efficient company,” Intel said in a statement confirming its expanded partnership with Accenture. “As part of this, we are focused on modernizing our digital capabilities to serve our customers better and strengthen our brand.”

The shift is part of a broader restructuring campaign spearheaded by Tan, a veteran semiconductor executive who was appointed CEO in March. Though he is the first Intel CEO in company history who did not rise through its internal ranks, Tan has wasted no time upending legacy operations. In April, he warned employees to expect “significant job cuts,” and details are now emerging across the company’s business units.

Last weekend, Intel informed workers in its manufacturing division that up to 20% of them could be laid off starting in July. The restructuring will reportedly cut thousands of jobs as Tan moves to flatten management layers and speed up decision-making.

Deepening Crisis at Intel

The cuts come as Intel struggles with some of the worst financial and strategic setbacks in its 56-year history. Once the undisputed leader in semiconductor technology, the company has lost ground to rivals like AMD and Nvidia, whose chips now dominate in high-performance computing and AI workloads. Meanwhile, Apple’s decision to ditch Intel processors in favor of its own custom silicon dealt a serious blow to Intel’s prestige and bottom line.

Years of delays in developing advanced chips—especially in shifting from 10nm to 7nm process nodes—have hurt Intel’s standing in both the PC and data center markets. At the same time, its absence from the booming AI chip segment has left it sidelined during one of the most transformative periods in computing.

Intel’s annual revenue has dropped by more than a third since its 2021 peak, falling from $79 billion to about $52 billion in 2023. The company reported a net loss of $2.8 billion in the first quarter of 2024, marking its third consecutive quarterly loss. These setbacks have weakened investor confidence and left the company in a precarious financial position as it seeks to regain market leadership.

AI at the Center of the Overhaul

Tan’s plan to restructure Intel includes a deep reliance on artificial intelligence, both as a business opportunity and as a tool to overhaul internal processes. The outsourcing of marketing functions to Accenture is being framed as part of an AI-driven strategy to eliminate inefficiencies, personalize customer engagement, and reduce operational complexity.

“AI can help us analyze large amounts of information faster, automate routine tasks, personalize customer experiences, and make smarter business decisions,” Intel told employees in its internal memo. “Our goal is to empower teams with more time to focus on strategic, creative and high-impact work by automating repetitive or time-consuming tasks.”

The company described the current structure of its marketing team as too slow, complex, and out of sync with customer expectations. In particular, it acknowledged that its programs were cumbersome and lagged behind more nimble competitors.

“We have received feedback that our decision-making is too slow, our programs are too complex, and our competitors are moving faster,” Intel wrote to staff. “The reality is that we need to change our ‘go to market’ model to be more responsive to what customers want.”

Intel appears confident that Accenture—leveraging advanced AI tools—can execute the marketing vision more effectively. The consulting firm will reportedly manage everything from campaign strategy to customer engagement, supported by machine-learning tools that optimize messaging and automate analytics.

The partnership also suggests a likely shift in job roles: some remaining Intel employees may be asked to help train Accenture staff and AI systems during the transition.

“We may ask impacted team members to share expertise to ensure a smooth transition of work,” the company wrote, hinting at knowledge transfer expectations.

Rising Concern Over AI Replacing Jobs

Intel’s strategy is unfolding amid growing concerns that artificial intelligence is already beginning to displace traditional white-collar roles. Amazon CEO Andy Jassy echoed similar expectations earlier this week, telling staff that AI would likely reduce the company’s total workforce over time. Jassy said many corporate roles would be rendered obsolete as automation takes over internal workflows.

Analysts say Intel’s gamble reflects a broader shift in corporate priorities across the tech sector: move faster, automate what can be automated, and reduce labor costs. But in Intel’s case, it’s also a desperate push to reverse declining revenues and close the technology gap between itself and its fiercest competitors.

While Intel is still investing billions in its foundry business and next-generation chip development, the current wave of restructuring highlights just how urgent its turnaround effort has become.