Intel Corporation has announced plans for a major Intel Layoff, involving approximately 15,000 employees worldwide as part of a new $10 billion cost-saving initiative. This Intel Layoff, representing 15% of their workforce, is expected to be completed by the end of 2024. According to Intel CEO Pat Gelsinger, most of these actions will be finalized by the end of this year. To achieve these savings, Intel will streamline operations by reducing layers, eliminating overlapping areas of responsibility, and halting non-essential work. Gelsinger acknowledged the difficulty of this decision, stating, “This is painful news for me to share. I know it will be even more difficult for you to read.”
In addition to workforce reductions, Intel aims to cut costs by reducing capital expenditures and the cost of sales, while maintaining core involvements to execute its strategy. This follows a significant round of Intel Layoff in October 2022.
Reasons for the Intel Layoff
Intel’s second-quarter revenue for 2024 was $12.8 billion, resulting in a loss of $1.6 billion for Q2 2024. The first quarter was also disappointing, with a loss of $437 million. Although not all of Intel’s businesses are operating at a loss, the company is losing money in its chipmaking Foundry business due to investments in new factories and extreme ultraviolet (EUV) lithography. Revenue has not met expectations, particularly with competitors like Nvidia becoming major players in AI server chips, and AMD also performing well. While Intel is not entirely losing profit in 2024, it only made a cumulative profit of $1.1 billion between Q2 2022 and Q1 2024. These financial challenges necessitate tough decisions, leading to the Intel Layoff.
Implementation Plan for the Intel Layoff
Pat Gelsinger stated, “This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.” To mitigate the impact, Intel will offer enhanced retirement packages to eligible employees and introduce a voluntary departure program. Beyond cost-cutting, Intel plans to overhaul its operating procedures and reduce complexity. The company aims to automate and simplify processes, focusing on eliminating bureaucracy and inefficiency to expedite workflows during this Intel Layoff.
This Article is developed basis Intel Financial Report Q2 2024
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