On the finish of 2024, Intel had 108,900 workers. Now the chipmaking large is planning to chop over 33,000 jobs to chop the workforce to 75,000 workers by the tip of the yr.
Intel CEO Lip-Bu Tan, 65, mentioned in a memo to workers on Thursday that Intel is implementing a plan to scale back its workforce by 15%. The layoffs are along with the roughly 21,000 roles (about 20% of Intel’s workforce) the corporate let go from April to June, which primarily targeted on reducing down layers of center administration.
Intel beforehand introduced in August that it was shedding 15% of its workforce, or over 15,000 workers, final yr.
Associated: Intel Requires Staff to Work From the Workplace Extra Usually: ‘This Motion Is Needed’
In its second-quarter earnings report launched on Thursday, Intel reported a sixth consecutive quarterly lack of $2.9 billion, almost double its $1.6 billion loss on the similar time a yr earlier. The elevated loss was primarily because of restructuring prices of $1.9 billion because of job cuts.
Tan said in a convention name with analysts and buyers following the report that over the previous three months, he had accomplished “a scientific evaluate” of Intel’s headcount and spending.
“Our purpose is to scale back inefficiencies and redundancies and enhance accountability at each stage of the corporate,” Tan said on the decision. “We have to right-size and reduce the corporate.”
Intel CEO Lip-Bu Tan. Photographer: Annabelle Chih/Bloomberg through Getty Photographs
Tan, who was beforehand CEO of chip software program firm Cadence Design Techniques from 2009 to 2021, is now tasked with turning Intel round after three years of declining income. He turned Intel’s CEO on March 18, changing former CEO Pat Gelsinger.
Intel faces competitors from rival corporations like Nvidia, which captured a larger share of the AI chip market. Nvidia had between 70% and 95% of the market share for AI chips final yr, in comparison with Intel’s lower than 1%, per CNBC.
Nevertheless, Intel is making an attempt to catch up. The corporate plans to launch extra environment friendly chips later this yr to higher compete with Nvidia and different rivals, per The Wall Road Journal.
Intel inventory was down over 7% this previous month, however up almost 2% year-to-date.
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On the finish of 2024, Intel had 108,900 workers. Now the chipmaking large is planning to chop over 33,000 jobs to chop the workforce to 75,000 workers by the tip of the yr.
Intel CEO Lip-Bu Tan, 65, mentioned in a memo to workers on Thursday that Intel is implementing a plan to scale back its workforce by 15%. The layoffs are along with the roughly 21,000 roles (about 20% of Intel’s workforce) the corporate let go from April to June, which primarily targeted on reducing down layers of center administration.
Intel beforehand introduced in August that it was shedding 15% of its workforce, or over 15,000 workers, final yr.
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