Intel announces major workforce cuts to streamline operations

Intel has unveiled a plan to cut over 15% of its workforce, amounting to around 15,000 jobs, as part of a significant restructuring effort to streamline its operations and manage costs more effectively. This drastic move follows the company's recent financial struggles, including a reported loss of $1.6 billion in the last quarter. The company is also slashing its capital spending by approximately 20% this year, reflecting a broader strategy to stabilize its finances and regain competitive ground.

The announcement has had an immediate impact on Intel's stock, which plummeted by 19% in after-hours trading. This decline marks a significant setback for Intel's turnaround efforts led by CEO Pat Gelsinger. Despite past successes in improving manufacturing processes, Gelsinger's efforts have yet to reverse the company's market share losses to rivals like AMD or capitalize on the growing demand for AI chips. Intel's revenue for the second quarter fell slightly short of expectations, highlighting ongoing challenges in achieving profitability.

In addition to the workforce reductions, Intel is focusing on innovation and strategic investments to recover its market position. The company plans to enhance its technological capabilities and expand into semiconductor manufacturing for other companies. These moves come as Intel faces increased competition from other tech giants and fluctuating demand for its core products. The restructuring is seen as a critical step towards achieving a sustainable business model and securing Intel’s long-term future.

(Sources: Agence France-Presse; Financial Times)