Intel to lay off 15,000 employees

Intel has announced plans to lay off 15,000 employees, representing over 15% of its workforce, as part of a strategy to cut costs by $10 billion by 2025. This decision follows disappointing second-quarter earnings and a challenging outlook for the remainder of 2024. CEO Pat Gelsinger highlighted that the company has not seen the expected revenue growth and has struggled to capitalize on trends such as artificial intelligence, unlike competitors like Nvidia. Between 2020 and 2023, Intel's annual revenues dropped by $24 billion, despite a 10% increase in its workforce. The company reported a 1% decline in revenues for the second quarter compared to the previous year, attributing this to gross margin challenges related to its AI PC products. Additionally, Intel will suspend its shareholder dividend starting in the fourth quarter of 2024 and anticipates more difficult market conditions ahead. Alongside the layoffs, Intel plans to offer a voluntary departure program and an enhanced retirement offering for eligible employees. The company is taking these steps to address its high costs and low margins in light of its financial performance and the competitive landscape in the semiconductor industry.