Written by Dante Uzel on 02 August 2024 16:33
Intel has announced significant staffing reductions, with plans to cut approximately 15,000 employees—15% of its entire workforce. This move comes as the company faces shrinking profit margins and high operational costs, prompting a need for urgent spending cuts. Intel CEO Pat Gelsinger, who revealed the news in a statement, cited a "tougher than expected" financial outlook for the second half of 2024 as a driving factor behind the decision.
The company’s strategy includes streamlining its operations and focusing on high-impact projects. This will involve "reducing layers, eliminating overlapping areas of responsibility," and "stopping non-essential work," according to Gelsinger. An example given was integrating the customer success team into the sales, marketing, and communications group.
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This latest round of layoffs significantly surpasses the company's previous reduction in 2023, when it let go of around 500 employees. For Q2 2024, Intel reported a revenue of $12.8 billion, a 1% decrease from the previous year, and it forecasts earnings of $12.5 billion to $13.5 billion for Q3.
Pat Gelsinger stated "We must align our cost structure with our new operating model and fundamentally change the way we operate, 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."
Tags: Intel
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