Intel's Day of Reckoning Arrives: 15,000 Jobs Will Be Eliminated
Intel plans to cut 15,000 jobs, about 15% of its workforce, to save $10 billion by 2025 after a $1.6 billion Q2 loss, amid increasing competition and operational challenges.
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Intel has announced a significant restructuring plan following a $1.6 billion loss in its Q2 earnings, which will result in the elimination of 15,000 jobs, approximately 15% of its workforce. This decision aims to reduce costs by up to $10 billion by 2025 and is part of a broader strategy to streamline operations and improve financial performance. CEO Pat Gelsinger described the layoffs as "painful news," emphasizing the need for the company to adapt to increasing competition and high operational costs. Intel's revenue has declined significantly since 2020, despite a larger workforce, prompting the need for a review of its product portfolio to identify underperforming units. The company has already made cuts in various sectors, including selling its wireless modem business to Apple and discontinuing certain GPU projects. Intel is also facing challenges in the AI market, where competitors like Nvidia and AMD are thriving, while Intel's own AI initiatives have not yet gained traction. Gelsinger remains committed to the IDM 2.0 strategy, which aims for technological advancements by 2025, but the company is expected to face a difficult period ahead as it implements these changes. Additionally, Intel is dealing with a potential class action lawsuit related to faulty CPUs, further complicating its situation as it prepares to launch new products.
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Intel is laying off over 10k employees
Intel plans to lay off 15,000 employees, a 15% workforce reduction, to cut costs by $10 billion by 2025 after a $1.6 billion loss in Q2 2024.
Intel, Struggling to Turn Itself Around, Will Cut More Than 15,000 Jobs
Intel will cut over 15,000 jobs, 15% of its workforce, amid a $1.6 billion loss and declining revenue. The company aims to save $10 billion by 2025 through restructuring.
Intel to layoff more than 15% of workforce
Intel plans to lay off over 15% of its workforce, about 15,000 employees, due to a $1.6 billion quarterly loss, aiming to reduce spending by $10 billion by 2025.
Intel to lay off 15,000 employees
Intel plans to lay off 15,000 employees, over 15% of its workforce, to cut costs by $10 billion by 2025, following disappointing earnings and a challenging market outlook.
Intel to shed at least 15% of staff to drive down costs
Intel plans to lay off over 16,000 employees, cut capital expenditures, suspend dividends, and outsource chip production to TSMC, following a $1.6 billion loss in Q2 2023.
6 comments(106 points, 19 hours ago, 92 comments) https://news.ycombinator.com/item?id=41133084
(77 points, 19 hours ago, 16 comments) https://news.ycombinator.com/item?id=41133133
[0]: https://www.intc.com/news-events/press-releases/detail/1692/...
[1]: https://www.intc.com/news-events/press-releases/detail/1704/...
It's been rehearsed to death that Intel missed the boat on mobile, AI, and datacenters. But if they can't even compete in CPUs for laptops, where they could and should be absolutely dominant, bankruptcy is a serious possibility in the not too distant future.
The thing that strikes me as truly bizarre about Intel's downfall is that their rivals often make big, obvious mistakes. The one that comes to mind is: what was AMD thinking with their 8600G and 8700G releases? Their pricing made no sense [2], and the laptop-based parts with the same GPUs are, evidently, perfectly fine for mini-pcs where a discrete GPU isn't possible [3]. So there was no obvious market need there (except may be for home-builders, but even there, a lot of cheap CPU/GPU combos made more sense for most use cases). Now we have Zen 5 parts coming out in the same year that blow the previous generation out of the water [4]. This is not a coherent strategy. This is not an unbeatable adversary.
I hope Intel pulls it together for competition's sake, because right now, a lot of things about the consumer PC market could stand to be improved.
[0] https://www.tomshardware.com/pc-components/cpus/intel-announ...
[1] https://www.tomshardware.com/pc-components/cpus/intel-lunar-...
[2] https://www.techspot.com/review/2796-amd-ryzen-8700g/
[4] https://www.anandtech.com/show/21485/the-amd-ryzen-ai-hx-370...
More discussion on official release: https://news.ycombinator.com/item?id=41133084
Related
Intel is laying off over 10k employees
Intel plans to lay off 15,000 employees, a 15% workforce reduction, to cut costs by $10 billion by 2025 after a $1.6 billion loss in Q2 2024.
Intel, Struggling to Turn Itself Around, Will Cut More Than 15,000 Jobs
Intel will cut over 15,000 jobs, 15% of its workforce, amid a $1.6 billion loss and declining revenue. The company aims to save $10 billion by 2025 through restructuring.
Intel to layoff more than 15% of workforce
Intel plans to lay off over 15% of its workforce, about 15,000 employees, due to a $1.6 billion quarterly loss, aiming to reduce spending by $10 billion by 2025.
Intel to lay off 15,000 employees
Intel plans to lay off 15,000 employees, over 15% of its workforce, to cut costs by $10 billion by 2025, following disappointing earnings and a challenging market outlook.
Intel to shed at least 15% of staff to drive down costs
Intel plans to lay off over 16,000 employees, cut capital expenditures, suspend dividends, and outsource chip production to TSMC, following a $1.6 billion loss in Q2 2023.