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Intel harbinger it would rest off more than 15 % of its faculty , or 15,000 employees , in amemo to employeeson Thursday . The massive head count is part of a big plan to scale down spending by $ 10 billion in 2025 , following adismal second - quarterearnings report and outlook .
“ Our revenues have not grown as expected — and we ’ve yet to fully do good from powerful course , like AI , ” read CEO Pat Gelsinger in a memorandum to employee . “ Our cost are too high , our margin are too low-down . We want bolder actions to address both — in particular given our fiscal results and expectation for the second half of 2024 , which is tougher than previously expected . ”
As Gelsinger trace , Intel has struggled to capitalize on the AI boom in the same way of life other ironware companies , such as Nvidia , have . Intel led the tech industry ’s revolution around C.P.U. chip shot or so 25 class ago , but has been slow to encompass newer wave of compute such as smartphones and AI . Gelsinger says yearly revenues at Intel fell $ 24 billion between 2020 and 2023 , despite its work force grow 10 % in the same time frame . That ’s a sodding contrast to other chipmakers during the AI boom , who have seen revenues and valuations soar to astronomical heights .
Intel report a 1 % decline in revenues for the second quarter compared to the same flow last year . The ship’s company ascribe the loss to gross perimeter headwinds relate to its AI PC merchandise . The caller is also suspending its shareholder dividend starting in the fourth quarter of 2024 , and anticipates “ more thought-provoking ” second - one-half movement than it previously expected .
Beyond the layoff , Intel will broadly offer applications for a “ voluntary departure ” program next week to employees at the company , harmonise to the memo . The caller is also announcing a companywide enhanced retreat offer for eligible employee .
