Intel confirms plans to lay off 15,000 employees following poor 2024 performance

Date:
Fri, 02 Aug 2024 09:30:11 +0000

Description:
Disappointed with its financial performance, including drop in quarterly revenue, Intel announced drastic plans.

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Intel has confirmed plans to lay off 15% of its workforce, totalling around 15,000 employees, confirming previous speculation.

The decision follows a disappointing second quarter and is part of a broader strategy to achieve $10 billion in cost savings by 2025.

Intel CEO Pat Gelsinger shared the news in a letter to employees,
highlighting the urgent need to align the companys cost structure with its
new operating model. Intel confirms major layoffs

Our revenues have not grown as expected Our costs are too high, our margins are too low," Gelsinger said, adding the company needed bolder actions in order to address challenges like a tougher than previously expected second half to the year and the fact that the company has not yet benefitted from
the AI trend.

Despite an increase of around 10% to its workforce since 2020, Intels annual revenues have declined by a concerning $24 billion. The companys most recent earnings revealed a 1% decline in revenues compared to the previous year, attributed to gross margin headwinds relating to its AI PC products.

Intels revenue for the three months ending June 29 stood at $12.8 billion.
The CEO added: Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones.

David Zinsner, Intels CFO, commented: By implementing our spending
reductions, we are taking proactive steps to improve our profits and strengthen our balance sheet.

In addition to the layoffs, Intel will offer a voluntary departure program
and an enhanced retirement package for eligible employees.

TechRadar Pro has reached out again for further information on how affected workers will be supported. More from TechRadar Pro Microsoft employees are
set for a tasty bonus following record profits These are the best job sites and best recruitment platforms Check out our roundup of the best processors



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Link to news story: https://www.techradar.com/pro/intel-confirms-plans-to-lay-off-15000-employees- following-poor-2024-performance


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