Intel Laying Off Tens of Thousands of Employees: CEO Memo

On the finish of 2024, Intel had 108,900 employees. Now the chipmaking large is planning to chop over 33,000 jobs to chop the workforce to 75,000 staff by the tip of the yr.

Intel CEO Lip-Bu Tan, 65, mentioned in a memo to staff on Thursday that Intel is implementing a plan to scale 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 centered on chopping down layers of center administration.

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

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 identical time a yr earlier. The elevated loss was primarily attributable to restructuring costs of $1.9 billion attributable to job cuts.

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

“Our purpose is to scale back inefficiencies and redundancies and enhance accountability at each stage of the corporate,” Tan acknowledged on the decision. “We have to right-size and reduce the corporate.”

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

Tan, who was beforehand CEO of chip software program firm Cadence Design Programs 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 firms like Nvidia, which captured a larger share of the AI chip market. Nvidia had between 70% and 95% of the market share for AI chips final yr, 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 yr 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.

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