Intel is to cut 15,000 jobs, about 15% of its total workforce, as part of a plan to reduce its operating and capital costs by $10bn in 2025, with most of the redundancies set to take place before the end of this year.
The news came as the chip giant reported second quarter revenues of $12.8bn, down by 1% year on year, and an operating loss of almost $2bn, almost double the size of the loss reported in the same quarter a year ago.
“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones. Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies while accelerating our IDM [integrated device manufacturing] 2.0 transformation,” stated CEO Pat Gelsinger. “These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value,” he added.
