Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Business

Intel Cuts 15% of Workforce Amid Financial Struggles

Intel Announces Significant Workforce Reductions Amid Financial Challenges

In a recent announcement that has sent ripples through the tech industry, Intel Corporation revealed plans to lay off 15% of its global workforce as part of a broader strategy to streamline operations and enhance market competitiveness. This decision comes on the heels of the company’s second-quarter financial results for 2024, which highlighted a decline in revenue and the need for substantial cost-cutting measures.

Intel, headquartered in Santa Clara, California, reported a slight 1% decrease in revenue compared to the previous year, prompting the semiconductor giant to initiate a $10 billion cost reduction plan. The company aims to bolster its efficiency and adaptability in a rapidly changing market landscape. As part of this initiative, the layoffs will affect approximately 18,720 employees, although the exact number of positions cut in the Bay Area remains uncertain.

Intel’s CEO, Pat Gelsinger, expressed disappointment over the company’s financial performance in the second quarter, stating that despite achieving key product and process technology milestones, the overall results fell short of expectations. He noted that the second half of the year is anticipated to present even more challenging conditions than previously forecasted. In light of these developments, Gelsinger emphasized the need for decisive actions to improve operational and capital efficiencies, aligning with the company’s IDM 2.0 transformation strategy.

As part of the restructuring efforts, Intel will also suspend dividends in the fourth quarter of 2024. This move reflects the company’s commitment to redirecting resources towards its core operations and addressing the financial hurdles it currently faces. The decision to lay off a significant portion of the workforce signals a pivotal moment for Intel as it seeks to navigate the complexities of the semiconductor market, which has been affected by various external factors, including geopolitical tensions and supply chain disruptions.

The layoffs are expected to be completed by the end of the year, although the company has not provided a specific timeline for the implementation of these cuts. The impact of these job losses will be felt across various departments and locations, with employees bracing for the potential changes ahead.

Intel’s commitment to enhancing its operational efficiency and competitiveness underscores the challenges facing the semiconductor industry as a whole. As companies grapple with evolving market dynamics and shifting consumer demands, strategic workforce adjustments may become a common theme in the tech sector.

As Intel moves forward with its restructuring efforts, the industry will be closely watching how these changes affect the company’s long-term trajectory and its ability to adapt to the ever-changing landscape of the technology market.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *