Intel to layoff 15,000 employees as CPU strategy shifts
Intel plans to lay off over 15,000 employees, cut spending significantly, and focus on manufacturing efficiency while launching new chips, aiming for improved profitability and operational transformation.
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Intel announced plans to lay off over 15,000 employees, representing more than 15% of its workforce, due to excess manufacturing capacity and costs associated with launching AI PCs. This decision is part of a broader transformation strategy aimed at improving operational efficiency. The company intends to reduce its research and development, marketing, and general spending to $20 billion in 2024, $17.5 billion in 2025, and further cuts in 2026. CEO Pat Gelsinger described the layoffs as a painful but necessary step following disappointing financial performance in Q2.
Intel is nearing the completion of a plan to advance through five manufacturing nodes in four years, shifting its focus towards capital efficiency and reducing gross capital expenditures by 20% in 2024. While the product roadmap remains unchanged for now, Gelsinger indicated that the company will simplify its product portfolio and integrate key software assets into its business units.
Intel has faced challenges with its 13th-gen Core chips but plans to launch the next-gen Core Ultra chip, Lunar Lake, at the IFA show in September. The company has shipped over 15 million Core Ultra chips and anticipates ramping production in 2025. Future chips, including Arrow Lake and Panther Lake, are also in development, with a focus on internal sourcing to enhance profitability. Despite the layoffs, Intel aims to incrementally build its business throughout 2024.
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4 commentsAnd everyone else around the CEO is a finance related MBA, they brought him back to lend legitimacy, which isn't working according to their actions.
Intel said Thursday that the company will lay off more than 15 percent of its workforce Intel will cut roughly 15,000 of its 131,000-employee headcount, most by the end of the year
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