Chipmaker Intel to cut 15,000 jobs as tries to revive its business
Intel plans to cut 15,000 jobs, 15% of its workforce, to save $10 billion by 2025 amid disappointing revenue and high costs, while focusing on AI and domestic manufacturing investments.
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Intel Corporation announced plans to cut approximately 15,000 jobs, representing 15% of its workforce, as part of a strategy to revitalize its business and enhance competitiveness against rivals like Nvidia and AMD. CEO Pat Gelsinger stated that the company aims to save $10 billion by 2025, citing the need to align costs with a new operating model due to disappointing revenue growth and high operational costs. The layoffs follow a challenging financial quarter, with Intel reporting a loss of $1.6 billion for the second quarter and a slight revenue decline. The company also plans to suspend its stock dividend as part of its cost-cutting measures. Gelsinger indicated that an enhanced retirement offering and a voluntary departure program would be introduced for eligible employees. Analysts have expressed skepticism about whether these layoffs alone will be sufficient to reposition Intel in the evolving chip market. The company is also focusing on investments in AI and domestic manufacturing, benefiting from the CHIPS and Science Act, which provides significant federal funding for semiconductor production in the U.S. Despite the immediate financial challenges, Gelsinger remains optimistic about the long-term potential of the AI PC market, projecting substantial growth in the coming years. Intel's stock experienced a significant drop following the announcement, reflecting investor concerns about the company's future performance and market position.
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3 commentsSo 12% of all employees. This would basically drop them back to pre-COVID levels, which they may have overhired for (like many tech companies). Still rough.
(116 points, 1 day ago, 111 comments) https://news.ycombinator.com/item?id=41133084
(79 points, 1 day ago, 18 comments) https://news.ycombinator.com/item?id=41133133
Am I missing something? On one hand, I think I get it: Intel hasn't been a GPU company historically. On the other, this quotes seems suspicious given Intel's gen 13 and 14 cores have issues:
> Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate
At the same time, my understanding is AMD seems ahead[2] of Intel in AI / CUDA support. This quote seems to be a nod to that without saying much else:
> Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.
Before anyone point oout "Intel® Extension for Pytorch*" exists[3]:
1. That seems to be the official name (what?)
2. Their installation homepage seems a little convoluted[4]
[1]: https://www.pcmag.com/news/intel-faces-potential-class-actio...
[2]: https://github.com/vosen/ZLUDA
[3]: https://intel.github.io/intel-extension-for-pytorch/xpu/late...
[4]: https://intel.github.io/intel-extension-for-pytorch/xpu/late...
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