Chipmaker Intel to cut 15,000 jobs as tries to revive its business and compete with rivals
Intel announced it will cut 15% of its workforce, approximately 15,000 jobs, as part of a strategy to save $10 billion by 2025 and better compete with rivals like Nvidia and AMD. CEO Pat Gelsinger cited high costs, low margins, and slower-than-expected revenue growth as reasons for the layoffs, which follow a disappointing financial quarter. Intel plans to offer enhanced retirement options and voluntary departure programs next week. The company also suspended its stock dividend as part of its cost-cutting measures. Intel reported a loss of $1.6 billion for Q2 2024, with a revenue decline to $12.8 billion, missing Wall Street expectations. The restructuring aims to align Intel’s operations with its new focus on AI chips and U.S. semiconductor manufacturing, bolstered by the 2022 CHIPS and Science Act. Despite the layoffs, Intel continues to invest in domestic manufacturing, with significant funding from the Biden administration for new chip plants, including a $20 billion project in Ohio.
See "Chipmaker Intel to cut 15,000 jobs as tries to revive its business and compete with rivals", BARBARA ORTUTAY, Associated Press, August 2, 2024