Intel CEO Says Layoffs Will Affect 15,000: ‘Tough Day’

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After reporting Net loss of $1.6 billion By the second quarter of 2024, Intel will $10 billion in cost savings By next year. On Thursday, the tech giant announced plans to cut more than 15,000 jobs, or about 15% of Intel’s current workforce.

in Thursday’s Note Intel CEO Pat Gelsinger told employees that revenue had not grown as expected and that the company had “yet to fully benefit from powerful trends like AI.”

“Our costs are too high and our profit margins are too low,” Gelsinger wrote.

Intel’s new plan involves streamlining its business and narrowing its focus on the most impactful projects. The company will “reduce layers and eliminate overlapping areas of responsibility” and “stop non-critical work,” according to the memo. Gelsinger gave the example of incorporating customer success teams into sales, marketing and communications groups.

“This is a tough day for all of us, and there will be tough days ahead,” Gelsinger wrote. “But despite all this difficulty, we are building on the progress we’ve made and are making the changes we need to usher in a new era of growth.”

He also said the majority of the job cuts would take place by the end of the year.

^{Intel CEO Pat Gelsinger. Photo by Annabel Chee/Bloomberg via Getty Images}

One of Intel’s goals is toAI Everywhere“AI products, AI PCThe company also wants to expand its manufacturing capacity in the U.S. and the EU.

Intel has already cut about 5,000 jobs between March and June, but the cuts are Not included With a new 15% reduction.

When it comes to market share for AI chips, Intel lags behind industry leader Nvidia. Bank of America analyst Intel’s market share will be less than 1%, while Nvidia’s is predicted to have between 70% and 95%.

Intel is down Year to date: 55% At the time of writing.

Related: TikTok has reportedly laid off a “significant percentage” of its employees, but the app’s fate in the US remains unclear