On the finish of 2024, Intel had 108,900 workers. Now the chipmaking big is planning to chop over 33,000 jobs to chop the workforce to 75,000 workers by the tip of the 12 months.
Intel CEO Lip-Bu Tan, 65, stated in a memo to employees on Thursday that Intel is implementing a plan to cut back its workforce by 15%. The layoffs are along with the roughly 21,000 roles (about 20% of Intel’s workforce) the corporate let go from April to June, which primarily centered on chopping down layers of center administration.
Intel beforehand introduced in August that it was shedding 15% of its workforce, or over 15,000 workers, final 12 months.
Associated: Intel Requires Workers to Work From the Workplace Extra Typically: ‘This Motion Is Needed’
In its second-quarter earnings report launched on Thursday, Intel reported a sixth consecutive quarterly lack of $2.9 billion, almost double its $1.6 billion loss on the similar time a 12 months earlier. The elevated loss was primarily as a consequence of restructuring prices of $1.9 billion as a consequence of job cuts.
Tan said in a convention name with analysts and traders following the report that over the previous three months, he had accomplished “a scientific evaluation” of Intel’s headcount and spending.
“Our objective is to cut back inefficiencies and redundancies and improve accountability at each degree of the corporate,” Tan said on the decision. “We have to right-size and reduce the corporate.”
Intel CEO Lip-Bu Tan. Photographer: Annabelle Chih/Bloomberg through Getty Pictures
Tan, who was beforehand CEO of chip software program firm Cadence Design Programs from 2009 to 2021, is now tasked with turning Intel round after three years of declining income. He grew to become Intel’s CEO on March 18, changing former CEO Pat Gelsinger.
Intel faces competitors from rival corporations like Nvidia, which captured a larger share of the AI chip market. Nvidia had between 70% and 95% of the market share for AI chips final 12 months, in comparison with Intel’s lower than 1%, per CNBC.
Nevertheless, Intel is making an attempt to catch up. The corporate plans to launch extra environment friendly chips later this 12 months to higher compete with Nvidia and different rivals, per The Wall Road Journal.
Intel inventory was down over 7% this previous month, however up almost 2% year-to-date.
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On the finish of 2024, Intel had 108,900 workers. Now the chipmaking big is planning to chop over 33,000 jobs to chop the workforce to 75,000 workers by the tip of the 12 months.
Intel CEO Lip-Bu Tan, 65, stated in a memo to employees on Thursday that Intel is implementing a plan to cut back its workforce by 15%. The layoffs are along with the roughly 21,000 roles (about 20% of Intel’s workforce) the corporate let go from April to June, which primarily centered on chopping down layers of center administration.
Intel beforehand introduced in August that it was shedding 15% of its workforce, or over 15,000 workers, final 12 months.
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