Intel to cut 15,000 jobs for fundamental changes

San Francisco: Intel said Thursday it will cut 15,000 jobs across the company as the chipmaker pursues fundamental changes amid growing competition from its rivals.

“We plan to deliver 10 billion dollars in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15 percent of our workforce,” said CEO Pat Gelsinger in a note to employees published Thursday on Intel’s website.

“This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history,” he said, Xinhua news agency reported.
It marks the biggest job cuts Intel has ever announced, U.S. media oregonlive.com reported.

Moreover, Intel said it will begin offering employees early retirement incentives and buyouts next week and suspend its shareholder dividend beginning next quarter.

“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” said Gelsinger. “My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come.”

Intel reported revenue of 12.8 billion dollars for the second quarter, down 1 percent year over year, and a net loss of 1.6 billion dollars. Gelsinger said the company’s strategy would not change even as he warned of difficult times to come.

Intel shares plunged 19 percent in after-hours trading to 23.56 dollars. If shares trade that low tomorrow, it would be the stock’s lowest point in over a decade, bringing Intel’s market value down to around 100 billion dollars.

IANS