American chip manufacturer announced on Thursday that it will cut 15 percent of its total staff in order to streamline its operations. According to reports, Intel currently employs 124,000 people. As per the company’s announcement, around 18,000 employees may be laid off.
American chip manufacturer Intel announced on Thursday that it will cut 15 percent of its total staff in order to streamline its operations. According to reports, Intel currently employs 124,000 people. As per the company’s announcement, around 18,000 employees may be laid off.
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The company will cut expenses by $ 20 billion.
Intel plans to cut its expenses by around $ 20 billion this year. The company had to face a loss of around $ 1.6 billion in the recent quarter. The company’s CEO Pat Gelsinger has issued a statement saying, “Our second quarter performance was very poor even though we achieved major product and technology milestones. The trends in the second half are more challenging than our previous expectations.” Chief Financial Officer David Zinsner said, “By cutting our expenses, we are taking proactive steps to improve our profitability and strengthen our balance sheet.”
The company also put a halt on its investment in Israel.
Troubled by losses, Intel had announced in June that it was also putting on hold the expansion of a major factory project in Israel. The company was planning to invest an additional $15 billion for a chip plant in Israel. Intel is facing tough challenges from its rival companies Nvidia, AMD and Qualcomm. For decades, Intel has dominated the market for chips, which are used in everything from laptops to data centers, but in recent years companies like Nvidia have moved ahead in the field of AI.
