Intel is laying off 15,000 people: 'we are making some of the most consequential changes in our company’s history'
Intel will be cutting 15,000 jobs, or 15% of its workforce, by the end of the year. The chip company has announced it aims to save $10 billion in 2025 as it reports no profits whatsoever from the previous three months.
«We plan to deliver $10 billion in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15% of our workforce,» says Intel CEO Pat Gelsinger in a note to employees.
«This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.»
Gelsinger says the decision is due to the introduction of a new operating model, which «made it clear our cost structure is not competitive».
«For example, our annual revenue in 2020 was about $24 billion higher than it was last year, yet our current workforce is actually 10% larger now than it was then. There are a lot of reasons for this, but it’s not a sustainable path forward,» Gelsinger says.
Intel has been trying to get itself back on a road to recovery for many years; CEO Gelsinger even was a part of said proposed recovery plan. Though it was not to be. It faces huge challenges in trying to turn itself into the profitable venture it once was, when money was quite literally flooding in, and it has yet to overcome many of them.
Its foundry business had slipped behind the competition and faces massive hurdles to catch up with competitors. Today, only a handful of the silicon inside its client CPUs and GPUs is actually made by Intel and its foundry business has operating losses of $2.8 billion for the previous three months. Many of Intel's costs have been seen to be playing catch-up to rivals such as TSMC.
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