Intel to layoff more than 15% of workforce

Intel has announced plans to lay off over 15% of its workforce, equating to approximately 15,000 employees, as part of a significant restructuring effort following disappointing financial results. The company reported a net loss of $1.6 billion for the quarter, attributed in part to yield issues with its Meteor Lake processors. This decision marks one of the most severe layoffs in Intel's history and comes alongside the suspension of its dividend starting in the fourth quarter of 2024. CEO Pat Gelsinger emphasized the need to reduce spending by $10 billion by 2025, with cuts expected in marketing and research and development (R&D). Intel will offer buyouts and early retirement options to some employees while proceeding with layoffs. The company aims to streamline operations and reduce capital expenditures by over 20% in 2024. Despite these challenges, Intel's 18A process node remains on track, and the company is committed to maintaining core investments in innovation. The restructuring is part of a broader strategy to simplify its portfolio and focus on more impactful projects. Analysts have noted that the yield issues may be linked to previous instability problems with Intel's 13th- and 14th-generation processors. Overall, Intel's recent performance has raised concerns about its ability to compete effectively in the semiconductor market, prompting these drastic measures to stabilize the company.