Intel Corporation is set to implement sweeping changes to its marketing division, announcing this week that it will outsource many of the department’s roles to Accenture and artificial intelligence systems. The move is part of new CEO Lip-Bu Tan’s cost-cutting and efficiency strategy, marking a dramatic shift in how the US-based chipmaker runs its operations.

The company began notifying its marketing employees of the decision this week and stated that most would learn their individual fates by 11 July. The internal announcement, obtained and reported by The Oregonian/OregonLive, outlined the company’s intention to significantly reduce headcount in marketing, retaining only leaner internal teams going forward.

“The transition of our marketing and operations functions will result in significant changes to team structures, including potential headcount reductions, with only lean teams remaining,” Intel said in the employee memo.

The company declined to disclose how many employees would be affected or how large its global marketing team is, though it has substantial staff in Oregon and other international sites.

AI and Accenture Take the Lead in Intel’s Marketing Overhaul

Intel confirmed its deepening partnership with Accenture, saying the consulting firm will now play a central role in its marketing strategy. The chipmaker highlighted the value of AI tools in helping to reach customers more effectively and at greater speed—one of several stated reasons behind the dramatic shake-up.

“We are focused on modernising our digital capabilities to serve our customers better and strengthen our brand,” Intel said in a statement to The Oregonian/OregonLive. “Accenture is a longtime partner and trusted leader in these areas and we look forward to expanding our work together.”

The company acknowledged that the change is not only a cost-reduction measure but a fundamental rethinking of how it engages the market. Employees were told that the shift was necessary to respond more effectively to customer needs, citing feedback that Intel’s decision-making processes are too slow and its programmes too complex.

“We need to change our ‘go to market’ model to be more responsive to what customers want,” the company told staff.

Intel also indicated that it may ask some outgoing employees to train their replacements at Accenture during the transition phase, a practice not uncommon in corporate restructuring but one that often stirs unease.

The outsourcing decision comes just months after Lip-Bu Tan took the helm as Intel’s CEO in March. A seasoned semiconductor executive but a newcomer to Intel, Tan is the company’s first CEO without prior tenure at the firm. His leadership is already making waves.

In April, Tan warned employees to expect significant job cuts, and over the past weeks, details of his restructuring plans have begun to surface across multiple business units. Just last weekend, Intel told staff in its manufacturing division that as much as 20% of the workforce could be laid off starting in July—a move that could impact several thousand jobs.

The shift to outsourcing marketing represents a major gamble: entrusting a third-party firm and artificial intelligence with one of the company's core functions. But it also signals Tan's urgency in addressing the challenges Intel faces.

Market Pressures Fuel Radical Moves

Intel has been struggling in recent years with technological delays, lost market share in PCs and data centres, and its failure to capitalise on the booming AI chip market. The company's revenue has plunged by over a third, pushing Intel into unprofitable territory and creating an uncertain outlook for the future.

“We are partnering with Accenture to leverage AI-driven technologies with the goals of moving faster, simplifying processes and reflecting best practices, while also managing our spending,” Intel said in this week’s internal announcement.

While many tech firms are experimenting with artificial intelligence, Intel’s move underscores a growing trend in corporate America: using AI not just to support work, but to replace entire job functions. Earlier this week, Amazon CEO Andy Jassy also acknowledged that AI could significantly reduce his company’s workforce in the years ahead.