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Intel Plans Mass Layoffs Beginning Monday Amidst Cost-Cutting Efforts
ByAinvest
Sunday, Aug 4, 2024 10:08 am ET1min read
Intel is set to initiate its largest-ever workforce reduction, affecting more than 17,000 employees, including in Israel, starting on Monday. The semiconductor giant will offer a voluntary retirement program with a one-time buyout and pension incentives. Following a registration phase, layoffs will begin later with a completion goal of November 15, aiming to achieve a $10 billion annual cost reduction as the company grapples with shrinking revenues and market share.
Intel, the world's leading semiconductor company, has recently announced plans to initiate its largest-ever workforce reduction, impacting more than 17,000 employees across the globe. The reduction is part of a broader cost savings plan aimed at achieving an annual reduction of $10 billion [1].According to reports, Intel will offer a voluntary retirement program with attractive one-time buyouts and pension incentives during a registration phase. Following the conclusion of this phase, layoffs will commence and are expected to be completed by November 15 [1]. The company currently employs over 125,000 workers, suggesting that the proposed reduction could represent a significant reduction of approximately 14% of its workforce [1].
Intel's decision to reduce its workforce stems from shrinking revenues and market share. The company reported a loss of $1.6 billion in Q2 2024, marking a significant increase from the $437 million loss reported in Q2 2023 [1]. Moreover, Intel has been investing heavily in its Foundry business, incurring substantial losses of $7 billion in operating losses in 2023 and an additional $2.8 billion in Q2 2024 [1].
Despite these losses, Intel remains optimistic about its future prospects. The company is set to receive up to $8.5 billion in US government funding from the CHIPS Act and continues to generate revenue from its PC and server businesses [1].
References:
[1] Sean Hollister. (August 1, 2024). Intel is laying off over 10,000 employees and will cut $10 billion in costs. The Verge. Retrieved from https://www.theverge.com/2024/8/1/24210656/intel-is-laying-off-over-10000-employees-and-will-cut-10-billion-in-costs
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