Proving earlier rumors to be true, chip manufacturer Intel has announced its plans to fire over 15% of its total workforce, amounting to between 15,000 and 19,000 employees, in an attempt to save $10 billion in 2025.
In a note sent by Intel CEO Pat Gelsinger to the workers, the director sang a familiar song of the firings being very painful news and the hardest thing he’s ever done in his career, attributing the decision to leave thousands of people unemployed by declining profits as Intel is “yet to fully benefit from powerful trends, like AI”
To address the issues the company faces these days, the CEO aims to cut operational costs, simplify Intel’s portfolio, eliminate overlapping responsibilities, halt non-essential work, and reduce Intel’s capital expenditures for 2024 by over 20%, leaving the company’s overall IDM 2.0 strategy, which includes priorities such as “expanding manufacturing capacity in the US and EU” and “delivering AI everywhere”, unchanged.
