Intel, Struggling to Turn Itself Around, Will Cut More Than 15,000 Jobs

Intel announced it will cut over 15,000 jobs, representing 15 percent of its workforce, as part of a turnaround strategy amid ongoing struggles. The company reported a net loss of $1.6 billion in the second quarter, with revenue declining by 1 percent to $12.8 billion. CEO Patrick Gelsinger described the job cuts as painful and part of significant changes in the company's history. Intel plans to reduce capital spending by over 24 percent and suspend its quarterly dividend in the fourth quarter, aiming to save $10 billion by 2025. The company has faced challenges due to stiff competition in the chip market, particularly from Nvidia and AMD, and a slump in demand for personal computers. Gelsinger has been working to revitalize Intel since taking over in 2021, focusing on improving manufacturing processes and lobbying for federal subsidies to boost U.S. chip production. Despite efforts to innovate and expand, Intel's revenue has not met expectations, and its gross profit margin has significantly decreased. The restructuring will involve trimming product offerings and eliminating nonessential work, with many job cuts achieved through early retirement and voluntary departure programs. Intel's last major restructuring occurred in 2016, when it cut 12,000 jobs. Gelsinger emphasized the need for a more efficient and less bureaucratic organization moving forward.