Intel lays off 15,000 employees

Intel has just announced that it will lay off 15,000 employees, equivalent to about 15% of the company's workforce, due to excess capacity as well as accelerating its restructuring plan.

Intel, the Silicon Valley chipmaker, said the layoffs are part of “the next phase of a multi-year transformation strategy.” The company plans to reduce its overall costs by $20 billion in 2024, $17.5 billion in 2025 and even lower in 2026. Intel will let go about 15,000 of its 131,000 employees, most of them by the end of the year.

Intel lays off 15,000 employees

In a statement, Intel CEO Pat Gelsinger acknowledged that the second quarter was disappointing, even as the company achieved important product and technology milestones. The outlook for the second half of 2024 is more challenging than expected, and they are relying on a new operating model to make decisions that improve operational and capital efficiencies and accelerate the pace of transformation.

Intel is nearing the end of its “4-year, 5-phase” (5N4Y) plan, and is shifting its focus to capital efficiency. This means the chipmaker will spend less on manufacturing: a 20% reduction in total capital expenditure this year. For now, the company’s product roadmap appears to be unchanged.

Intel CEO Pat Gelsinger said he was “heartbroken” to share the news of the layoffs in a memo to employees. “This is a difficult announcement for me to make. I know it will be even more difficult for you to read,” he wrote.

One of Intel’s goals is to eliminate complexity and simplify the product portfolio. Each business unit will evaluate its portfolio and identify underperforming products. Incubation will also focus on fewer, more meaningful projects.

Intel has been having trouble with its 13th-generation Core chips recently. The company planned to introduce its next-generation Core Ultra chips — Lunar Lake — at IFA in early September. So far, the company has sold more than 15 million Core Ultra chips.

Source: https://baoquocte.vn/intel-sa-thai-15000-nhan-vien-281166.html