Intel has announced it will reduce its global workforce by about 15,000 employees.
As detailed in its second quarter 2024 financial results released yesterday, Intel revealed a $10 billion cost-cutting plan that will include a more than 15% reduction in headcount “to rightsize and refocus” the company.
Most of the layoffs will be completed by the end of 2024, he said.
In a separate note to employees, CEO Pat Gelsinger addressed the layoffs, saying the company was “making some of the most significant 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 revenue has not grown as expected and we have not yet fully benefited from powerful trends, such as AI. Our costs are too high and our margins are too low.
“We need bolder action to address both issues, particularly given our financial results and outlook for the second half of 2024, which are more challenging than previously expected.”
Gelsinger noted that Intel's “annual revenue in 2020 was about $24 billion higher than last year” despite its workforce being 10% larger.
Intel reported second-quarter 2024 revenue of $12.8 billion, down 1% year-over-year. It forecast earnings of between $12.5 billion and $13.5 billion for its third quarter.