Intel is laying off over 10k employees

Intel has announced plans to lay off approximately 15,000 employees, representing a 15% reduction in its workforce, as part of a broader strategy to cut costs by $10 billion by 2025. This decision follows a significant financial loss of $1.6 billion in the second quarter of 2024, which is a substantial increase from the previous quarter's loss of $437 million. Despite some areas of profitability, particularly in its PC and server businesses, Intel has struggled with its Foundry division, which has incurred $7 billion in operating losses in 2023. CEO Pat Gelsinger acknowledged the challenges faced by the company, stating that the current cost structure is unsustainable and that operational efficiencies are necessary.

The layoffs are part of a restructuring effort that includes suspending dividends and reducing capital expenditures by over 20% in 2024. Intel aims to simplify its operations, eliminate inefficiencies, and focus on maintaining key investments in technology and product leadership. The company has previously undergone layoffs in 2022 but had not significantly reduced its workforce at that time. The majority of the current layoffs are expected to be completed by the end of 2024. Gelsinger emphasized the need for bold actions to align costs with the new operating model and to adapt to market realities, aiming to position Intel for future growth in a competitive semiconductor landscape.