Intel is laying off over 10,000 employees and will cut $10 billion in costs

Intel’s connected a long, agelong roadworthy to recovery, and implicit 10,000 workers volition apt nary longer beryllium coming on for the ride. The chipmaker just announced it’s downsizing its workforce by 15 percent, arsenic portion of a caller $10 cardinal outgo savings plan. With 125,300 employees arsenic of June 29th, that volition apt mean a important fig of layoffs.

The institution conscionable reported a nonaccomplishment of $1.6 cardinal successful Q2 2024, substantially much than the $437 cardinal it mislaid past quarter. It’s not similar each its businesses are failing, though; portion Intel has perfectly been losing wealth connected its chipmaking Foundry concern arsenic it invests successful caller factories and utmost ultraviolet (EUV) lithography, to the tune of $7 cardinal successful operating losses successful 2023, the institution products themselves aren’t unprofitable.

Almost each the losses this 4th and past 4th came from Foundry portion its income proceed to enactment comparatively stable, and its PC and server businesses enactment profitable. (The PC income slump ended earlier this year.)

But investors don’t look blessed that the institution is keeping itself connected a knife’s edge: implicit the past 2 years, it’s continued to plaything betwixt losses and profits overall, for conscionable $1.1 cardinal successful nett betwixt Q2 2022 and Q1 2024. “Intel is present the worst-performing tech banal successful the S&P 500 this year,” CNBC wrote successful April.

From a tech enactment perspective, Intel’s yet not a large subordinate successful AI server chips similar Nvidia (maybe not adjacent a tiny 1 similar AMD), its comparatively caller introduction into graphics has yet to impress, and it had to overhaul its flagship laptop chips significantly to code the existential menace of Arm chips from the likes of Qualcomm and Apple, which tin connection much artillery beingness than Intel.

Microsoft precocious followed Apple’s pb successful ditching Intel chips for its latest slate of user hardware, including the Surface Laptop and Surface Pro, and launched its full Copilot Plus PC initiative exclusively with Qualcomm, without waiting for Intel (or AMD)’s caller flagship laptop chips to articulation them.

Intel antecedently had a large circular of layoffs successful October 2022, erstwhile it besides announced it would chopped betwixt $8 and $10 cardinal successful costs each year done 2025. But the institution didn’t shrink each that overmuch arsenic a result. While headcount dipped astir 5 percent successful 2023 (from 131,900 employees to 124,800 employees), Intel hired its mode backmost to 130,700 employees arsenic of March 30th, 2024, its fiscal records show.

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