Intel Is Laying Off Up To 19,000 Staff As Part Of Cost-Cutting Exercise

It’s confirmed: Intel will be laying as many as 19,000 employees, as part of the chipmaker’s new US$10 billion (~RM45.3 billion) cost-cutting plan for 2025. The announcement comes after the company reported a loss of US$1.6 billion (~RM7.25 billion) in the second quarter of this year, Pat Gelsinger, CEO of Intel, describing the company’s financial performance as disappointing.

“This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history.” Gelsinger wrote in a memo to staff. For context, the company employs more than 130,000 people around the world. The layoff accounts for approximately 15% of total workforce.

To add insult to injury, the blue chipmaker also has to deal with issues that is potentially bringing two generations of Raptor Lake desktop CPUs to ruin. On top of that, the company’s CFO, David Zinsner, says that it’s upcoming launch of Lunar Lake won’t be enough to help turn the tides for the company’s fortunes.

The chipmaker accredits “Second-quarter results were impacted by gross margin headwinds from the accelerated ramp of our AI PC product, higher than typical charges related to non-core businesses and the impact from unused capacity.” Based on that statement, it’s likely a reference to its Meteor Lake launch last year, which fell short of its original goals. Intel’s cost-saving exercise will comprise four key priorities: Reducing operating expenses, reducing capital expenditure, reducing cost of sales, and maintaining core investments to execute strategy.

You can read the entire PDF of the company’s quarterly earnings report in the source below.

(Source: Intel [1] [2], The Verge, Videocardz)