Intel is trying hard to save costs even if it means reducing its workforce by at least 15 per cent. Yes, Intel will let go over 15,000 of its team members, which will result in cost savings of about $10 billion for 2025, as per media reports.
The current workforce strength of the chip maker is at least 1.25 lakh. The headcount reduction could affect up to 19,000 employees.
The company is also planning to cut down on expenditure in the research and development division, as well as it marketing unit by billions, annually, for the next two years. This year, it is reducing capital expenses by 20 per cent. All “non-essential” work will be discontinued and a review will be undertaken of the ongoing projects and existing equipment. The exercise is aimed at doing away with unnecessary expenditure.
The employees were informed of the downsizing via an internal memo from Pat Gelsinger, CEO, Intel.
The second quarter of 2024 witnessed Intel incurring losses of about $1.6 billion, which was way more than the losses of $437 million in the previous quarter.
Clearly, the firm’s revenues grew at a rate well below expectation.
However, Intel’s PCs and servers continue to sell well and its products are profitable even though its chipmaking Foundry division has faced losses.
It remains to be seen whether Intel’s upcoming AI laptop chip, Lunar Lake will improve the profits of the company.
