Intel lays off 15,000 employees.

Intel has just announced the layoff of 15,000 employees, equivalent to about 15% of the company's workforce, due to excess capacity and an accelerated 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 overall costs by $20 billion in 2024, $17.5 billion in 2025, and even lower in 2026. Intel will lay off approximately 15,000 of its 131,000 employees, mostly by the end of this year.

Intel lays off 15,000 employees.

In a statement, Intel CEO Pat Gelsinger acknowledged disappointing second-quarter results, even as key technology and product milestones were achieved. Meanwhile, the outlook for the second half of 2024 is more challenging than anticipated, and they are relying on a new operating model to make decisions that will improve operational efficiency, capital, and accelerate transformation.

Intel is nearing completion of its “4-year, 5-process” (5N4Y) plan and is therefore shifting its focus to capital efficiency. This means the chipmaker will spend less on production: a 20% reduction in total capital expenditure this year. Currently, the company's product roadmap appears unchanged.

Intel's CEO expressed his "heartbreak" at having to share the layoff news in a memo to employees. "It is heartbreaking for me to have to make this announcement. I know it will be even harder for you to read," Pat Gelsinger wrote.

One of Intel's top priorities is to eliminate complexity and simplify the product portfolio. Each business unit conducts portfolio reviews and identifies underperforming products. Incubation efforts also focus on fewer but more meaningful projects.

Intel has recently encountered issues related to its 13th-generation Core chips. The company plans to introduce its new generation Core Ultra chips – Lunar Lake – at the IFA exhibition in early September. To date, it has sold over 15 million Core Ultra chips.

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