Intel Announces Plan To Lay Off 15,000 Employees
|Majority of the actions included in the $10 billion cost-reduction plan will be completed by the end of this year.
Intel announced that it would lay off more than 15% of its staff, or 15,000 employees, as part of a cost reduction plan. Notably, the majority of the actions included in the $10 billion cost-reduction plan will be completed by the end of this year. The renowned chipmaker has also said that it will not pay its dividend in the fiscal fourth quarter of 2024.
"Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low," Intel CEO Pat Gelsinger said in a statement. "We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected," Pat Gelsinger added. The company made this crucial move as its revenue declined 1% year-over-year in the fiscal second quarter, which ended on June 29.
The Intel CEO said that annual revenues at the company fell $24 billion between 2020 and 2023, despite its workforce growing 10 percent in the same time frame. Apart from layoffs, Intel will also announce a company wide "enhanced retirement offering" for eligible employees and broadly offer an application program for voluntary departures.