Intel Lay Offs: The giant chip maker Intel is going to do a big layoff. It is reported that the American company is going to cut 15 percent of its huge workforce, in which about 15,000 people will be fired. Actually, the company is trying to change its business so that it can compete with rival companies like Nvidia and AMD. In a memo sent to employees, Intel Corp CEO Pat Gelsinger said on Thursday that the company is working on a plan to save $ 10 billion in the year 2025.
What Pat Gelsinger told employees
“We must align our cost structure with our new operating model and fundamentally change the way we operate,” Pat Gelsinger said in a memo published on Intel’s website. “Our revenues have not grown as expected and we have not yet fully benefited from powerful trends like AI. Our costs are too high, our margins are too low.”
Decision to cut jobs after disappointing quarter
The job cuts come after a disappointing quarter and forecast for Intel, the iconic chipmaker founded in 1968 at the start of the PC revolution. Intel will announce an “enhanced retirement offering” for eligible employees and an application program for voluntary departures, Gelsinger wrote. “These decisions have challenged me to my core and have been some of the most difficult I have had to make in my career,” he said. The bulk of the layoffs are expected to take place this year.
Decision to suspend stock dividend
The California-based company is also suspending its stock dividend as part of a broader plan to cut costs. Intel reported a loss for its second quarter as well as a slight drop in revenue and forecast lower third quarter revenue than Wall Street estimates.
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