Bobby. wrote on Aug 5
th, 2024 at 12:21pm:
https://edition.cnn.com/2024/08/01/business/intel-layoffs-chips/index.html?iid=c...Intel lays off 15% of its staff and its stock tumbles
as it struggles to turn around its ailing business.
New York CNN —
Intel is slashing 15% of its staff as part of a $10 billion plan to reduce costs, the tech company announced in its second-quarter earnings Thursday.
“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” CEO Pat Gelsinger wrote in a memo Thursday. “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
The company reported revenue of $12.8 billion in the second quarter – down 1% from the year prior – and an income loss of $1.6 billion.
The company is holding out hope that the AI investments will pay off. Intel wants to spend tens of billions of dollars less, cut 15,000 jobs, and reduce operating expenses to “sustain investments to build a resilient and sustainable semiconductor supply chain in the United States and around the world,” it said in its earnings statement.
Intel wants to cut the $10 billion by 2025.
Intel will also suspend its dividend starting the fourth quarter of 2024, which means it has halted payments it was planning to give shareholders. Intel shares dropped 19% in after-hours trading.
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