Intel had introduced it’s lowering its world workforce by round 15,000 staff.
As detailed in its Q2 2024 financial results revealed yesterday, Intel revealed a $10 billion price discount plan which can embrace a greater than 15% discount in headcount „to resize and refocus“ the corporate.
Nearly all of layoffs can be accomplished by the tip of 2024, it mentioned.
In a separate note to employees, CEO Pat Gelsinger addressed the layoffs by saying the corporate was „making a few of the most consequential modifications in [its] historical past.“
„We should align our price construction with our new working mannequin and basically change the way in which we function,“ Gelsinger wrote. „Our revenues haven’t grown as anticipated – and we have but to completely profit from highly effective developments, like AI. Our prices are too excessive, our margins are too low.
„We want bolder actions to deal with each – significantly given our monetary outcomes and outlook for the second half of 2024, which is more durable than beforehand anticipated.“
Gelsinger famous that Intel’s „annual income in 2020 was about $24 billion increased than it was final yr“ regardless of its workforce being 10% bigger.
Intel posted Q2 2024 income of $12.8 billion, a lower of 1% year-over-year. It forecast earnings of between $12.5 billion to $13.5 billion for its third quarter.