Intel currently employs over 125,000 people. Intel’s revenue fell 1% year-on-year in the second quarter. Target to reduce capital expenditure by more than 20% this year.
New Delhi. Multinational company Intel is going to lay off more than 15 lakh employees. The company gave this information on Thursday in a memo sent to the employees. The company has said that it will reduce its total number of employees by 15 percent. Due to a huge drop in income in the second quarter and the fears of the business not picking up in the future, the company has planned to reduce its expenses by ten billion dollars in the year 2025. To cut expenses, the company will reduce its workforce.
“Our revenue hasn’t grown as expected — and we haven’t yet fully benefited from powerful trends like AI. Our costs are too high, our margins are too low. Both of these challenges require bolder action,” Intel CEO Pat Gelsinger wrote in a memo to employees.
125,000 employees work
According to a report by The Verge, Intel currently employs more than 125,000 employees. Therefore, if 15 percent layoffs happen, 19,000 employees may lose their jobs. Intel will cut its research and development and marketing expenses by billions of dollars every year by 2026. The company has also set a target of reducing capital expenditure by more than 20 percent this year. Not only this, the company will take steps to “stop non-essential work” and review “all active projects and equipment” to prevent excessive expenditure.
Income fell in the second quarter
Intel’s revenue fell 1 percent in the second quarter compared to the same period last year. The company has also suspended its shareholder dividend from the fourth quarter of 2024. The memo said that apart from layoffs, Intel will also introduce a “voluntary departure” program for employees in the company from next week. Employees who leave the company voluntarily will be given good compensation.
Intel has missed out on the AI boom. Intel led the CPU chips revolution nearly 25 years ago, but has missed out on new computing waves like smartphones and AI. Gelsinger says Intel’s annual revenue will drop by $24 billion between 2020 and 2023. Despite this, the company’s employee count increased by 10 percent during this period.
Tags: Business news, Job and career, Job loss
FIRST PUBLISHED : August 2, 2024, 09:43 IST