Intel Laying Off Tens of Thousands of Employees: CEO Memo

On the finish of 2024, Intel had 108,900 employees. Now the chipmaking big is planning to chop over 33,000 jobs to chop the workforce to 75,000 staff by the top of the 12 months.

Intel CEO Lip-Bu Tan, 65, mentioned in a memo to staff on Thursday that Intel is implementing a plan to cut back its workforce by 15%. The layoffs are along with the roughly 21,000 roles (about 20% of Intel’s workforce) the corporate let go from April to June, which primarily targeted on reducing down layers of center administration.

Intel beforehand introduced in August that it was shedding 15% of its workforce, or over 15,000 staff, final 12 months.

Associated: Intel Requires Employees to Work From the Office More Often: ‘This Action Is Necessary’

In its second-quarter earnings report launched on Thursday, Intel reported a sixth consecutive quarterly lack of $2.9 billion, practically double its $1.6 billion loss on the similar time a 12 months earlier. The elevated loss was primarily as a result of restructuring costs of $1.9 billion as a result of job cuts.

Tan said in a conference call with analysts and buyers following the report that over the previous three months, he had accomplished “a scientific assessment” of Intel’s headcount and spending.

“Our objective is to cut back inefficiencies and redundancies and improve accountability at each degree of the corporate,” Tan said on the decision. “We have to right-size and reduce the corporate.”

^{Intel CEO Lip-Bu Tan. Photographer: Annabelle Chih/Bloomberg through Getty Photos}

Tan, who was beforehand CEO of chip software program firm Cadence Design Techniques from 2009 to 2021, is now tasked with turning Intel round after three years of declining income. He became Intel’s CEO on March 18, changing former CEO Pat Gelsinger.

Intel faces competitors from rival corporations like Nvidia, which captured a better share of the AI chip market. Nvidia had between 70% and 95% of the market share for AI chips final 12 months, in comparison with Intel’s lower than 1%, per CNBC.

Associated: How Nvidia CEO Jensen Huang Transformed a Graphics Card Company Into an AI Giant: ‘One of the Most Remarkable Business Pivots in History’

Nonetheless, Intel is making an attempt to catch up. The corporate plans to launch extra environment friendly chips later this 12 months to raised compete with Nvidia and different rivals, per The Wall Street Journal.

Intel stock was down over 7% this previous month, however up practically 2% year-to-date.

^{Be part of prime CEOs, founders and operators on the Level Up conference to unlock methods for scaling your online business, boosting income and constructing sustainable success.}