Intel reveals plans to cut approximately 15,000 positions

Intel has unveiled a plan to cut its global workforce by approximately 15,000 positions.

In the second-quarter financial report for 2024 released yesterday, the company disclosed a $10 billion cost-saving initiative that includes reducing its workforce by over 15% to "resize and refocus" its operations.

The company intends to complete most of these layoffs by the end of 2024.

CEO Pat Gelsinger addressed the workforce reduction in a message to employees, stating that the firm is undergoing some of the most significant changes in its history.

"We must align our cost structure with our new operating model and fundamentally change the way we operate," Gelsinger said. "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.

"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."

Gelsinger also highlighted that in 2020, Intel's annual revenue was about $24 billion more than last year, despite having a workforce that was 10% larger.

For Q2 2024, Intel reported revenues of $12.8 billion, marking a 1% decline compared to the previous year. The company projects its third-quarter earnings to range between $12.5 billion to $13.5 billion.