United States – Chip giant Intel announced Friday night that it will lay off about 15,000 employees after being forced to announce cuts of up to $10 billion. The layoffs will be completed by November 15.
This is the largest wave of layoffs ever at Intel, with 15% of its workforce being cut. The company’s stock collapsed after an expected 19% move to $23.56, opening today at its lowest opening point in more than a decade.
The company reported revenue of $12.8 billion in the second quarter and forecast an 8% decline in the current quarter. Intel said it lost $1.6 billion in the spring months and that trend will continue into the summer as well.
“These decisions have been extremely difficult for me, and they are the hardest thing I have ever done in my career,” CEO Pat Gelsinger told employees in a letter posted on Intel’s website. “My commitment to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months ahead.”
The CEO also told his employees that Intel’s expenses were too high and that the company’s sales were not meeting expectations, noting that they had 10% more employees than they did in 2020, even though revenue has since fallen by more than 24%.
The painful move comes after a difficult two years for the company, which already carried out a wave of layoffs last year and cut employee wages and bonuses. Intel has since managed to limit some of the damage, but the company’s stock price decline has hurt its recovery efforts.
Agencies
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2024-08-02 11:47:58