Subj : Intel confirms plans to lay off 15,000 employees following poor 2
To   : All
From : TechnologyDaily
Date : Fri Aug 02 2024 10:45:05

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.

FULL STORY
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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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