What just happened? Intel is preparing for a major transformation of its marketing operations, marking a significant shift in how the company approaches customer engagement and internal organization. Under the direction of newly appointed CEO Lip-Bu Tan, the technology giant will outsource a substantial portion of its marketing work to Accenture, a global consulting firm, with artificial intelligence playing a central role in the transition.

This move is expected to result in significant layoffs within Intel’s marketing division, with most affected employees expected to learn their fate by July 11.

The decision comes as Intel faces mounting pressure to reduce costs and regain its competitive edge in a rapidly evolving semiconductor market.

In recent years, the company has experienced technological setbacks and declining sales, prompting leadership to seek ways to streamline operations and accelerate decision-making. Tan, who took the helm in March, has made it clear that bold changes are necessary to modernize Intel’s business model and better position the company for the future.

Intel’s leadership believes that Accenture, leveraging advanced AI tools, will be able to connect more effectively with customers and drive marketing outcomes that surpass those achieved by the company’s in-house teams.

The company has stated that the transition will lead to “significant changes to team structures,” with only “lean teams” remaining after the restructuring is complete. While Intel has not disclosed the exact number of jobs to be eliminated, the impact is expected to be felt across its global marketing organization.

The integration of AI into Intel’s marketing operations is seen as a way to automate routine tasks, analyze large volumes of data, and personalize customer interactions at scale. By outsourcing these functions, Intel aims to allow its remaining internal teams to focus on more strategic and creative work rather than day-to-day execution. The company has acknowledged that some employees may be asked to help train their replacements at Accenture during the transition.

However, the process is not without its challenges. The layoffs are expected to have a significant impact on Intel’s workforce, raising concerns about job security and the future role of human workers in an AI-driven corporate environment. For many employees, the coming weeks will bring uncertainty as the company finalizes its new operating model.