Intel’s Bold Move: Layoffs of 15,000 Employees to Spark Business Revival Lede: In a strategic bid to rejuvenate its business and address a recent quarterly guidance miss, Intel is set to slash 15% of its workforce, numbering around 15,000 jobs, aiming to save a substantial $10 billion by 20CEO Pat Gelsinger underscores the urgency to realign the cost structure with a new operational paradigm following lackluster revenues and soaring expenses, amidst a backdrop of disappointing financial results and a sharp stock downturn.
Intel Corporation to Lay off 15,000 Employees in Effort to Revive Business
Intel Corporation is making significant changes in response to disappointing financial results by announcing a plan to cut 15% of its workforce, which equates to about 15,000 jobs. This move is part of an effort to save $10 billion by the year 2025.
The company’s CEO, Pat Gelsinger, emphasized the need to align Intel’s Corporation cost structure with its new operating model following lower-than-expected revenues and high costs. The decision to implement layoffs comes after a disappointing quarter and forecast, leading to a 19% drop in the company’s stock price in after-hours trading.
In the second quarter of this fiscal year, Intel Corporation reported a significant loss of $1.6 billion and decided to suspend its stock dividend. While analysts believe that the cost-cutting plan may provide some relief in the short term, they are skeptical that it will fundamentally alter Intel’s position in the competitive chip market.
Despite these challenges, Intel Corporation is striving to secure a strong presence in chip fabrication and artificial intelligence markets. The company plans to invest in domestic manufacturing, with assistance from the CHIPS Act. Moreover, the Biden administration is supporting Intel by providing funding and loans for its computer chip plants, including a substantial $20 billion project in Ohio.
The new plant in Ohio is expected to generate employment opportunities by creating 7,000 construction jobs and 3,000 full-time positions with an annual salary of $135,000. Intel Corporation initiatives aim to revamp its cost structure, enhance competitiveness, and position the company for success in the evolving tech landscape.
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