Intel Announces Major Job Cuts Amid Competitive Pressures
Chipmaker Intel Corp. is set to cut approximately 15,000 jobs, or 15% of its workforce, as it aims to realign its business strategy and improve its financial standing in a competitive market. In a memo to employees, CEO Pat Gelsinger outlined a plan to save $10 billion by 2025, citing high costs and low margins that hinder the company’s growth, especially in the lucrative AI sector.
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The Major Job Cuts Follow Disappointing Q2 Report
The major job cuts follow a disappointing second-quarter report, where Intel reported a loss of $1.6 billion, down from a profit of $1.5 billion a year earlier. Revenue also dipped slightly, sparking a 19% drop in after-hours trading, potentially costing the company $24 billion in market value.
To aid the transition, Intel will introduce an enhanced retirement offering and a voluntary departure program for eligible employees. Gelsinger emphasised the difficult nature of these decisions, calling it one of the hardest moments in his career.
Despite these immediate measures, analysts warn that job cuts alone may not be enough to reposition Intel in the rapidly evolving chip market. As the company strives to leverage U.S. investments in semiconductor manufacturing, its long-term success hinges on its ability to adapt to rising demands in AI technology.
