Intel announces layoffs of around 15,000 staff
Intel had announced it is reducing its global workforce by around 15,000 employees.
As detailed in its Q2 2024 financial results published yesterday, Intel revealed a $10 billion cost reduction plan which will include a more than 15% reduction in headcount "to resize and refocus" the company.
The majority of layoffs will be completed by the end of 2024, it said.
In a separate note to employees, CEO Pat Gelsinger addressed the layoffs by saying the company was "making some of the most consequential changes in [its] history."
"We must align our cost structure with our new operating model and fundamentally change the way we operate," Gelsinger wrote. "Our revenues have not grown as expected – and we've yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.
"We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected."
Gelsinger noted that Intel's "annual revenue in 2020 was about $24 billion higher than it was last year" despite its workforce being 10% larger.
Intel posted Q2 2024 revenue of $12.8 billion, a decrease of 1% year-over-year. It forecast earnings of between $12.5 billion to $13.5 billion for its third quarter.
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