Is Intel going to layoff?
Intel confirmed that it is laying off 15,000 employees, approximately 15% of its workforce, in 2024. This is part of a larger cost-cutting effort aimed at saving $10 billion by 2025 due to disappointing financial performance. The company saw a decline in revenue and struggled to benefit from AI trends in the PC market【66†source】【68†source】.
Reasons for the Layoffs
Intel’s financial challenges include a $1.6 billion loss in the second quarter of 2024 and a significant decline in annual revenue. The company attributed this to high operating costs and declining margins, despite growth in its workforce. Intel has acknowledged the need for “bolder actions” to align its costs with the company’s new operating model【67†source】【68†source】.
Timeline for the Layoffs
Intel aims to complete these layoffs by the end of 2024, with the final notifications expected by mid-October 2024. The company has already begun offering voluntary departure programs and retirement packages to help reach its reduction targets【67†source】【68†source】.
Intel’s Broader Strategy
In addition to workforce reductions, Intel is focusing on other cost-cutting measures like scaling back its real estate footprint and turning its foundry division into an independent subsidiary. Intel’s US-based manufacturing operations are expected to remain unaffected, but certain international projects in Germany, Poland, and Malaysia have been paused【66†source】【68†source】.
GET YOUR FREE
Coding Questions Catalog
$197
$78
$78
