Intel has laid off 15,000 employees, with the CEO stating that ‘painful but tougher days are ahead

Description

Intel CEO Pat Gelsinger has announced that the company will be implementing significant job cuts as part of a broader effort to reduce expenses and achieve financial stability. In a memo to employees, Gelsinger revealed that Intel is targeting $10 billion in savings by 2025, which will result in a reduction of approximately 15% of the workforce. To support this transition, the company will introduce an enhanced retirement package for eligible employees and offer a voluntary departure program next week.

Gelsinger expressed his deep regret over the decision, acknowledging the difficulty of the news for employees. He described the situation as one of the most challenging moments in Intel’s history, stating, “We are implementing some of the most significant changes in our company’s history.”

He highlighted that Intel's high costs and low margins necessitate these measures, noting that the financial outlook for the second half of 2024 is more challenging than expected. “We need to take more decisive actions to address these issues,” he said.