Intel to Cut Around 15,000 Jobs Globally

Intel has unveiled plans to downsize its global workforce by approximately 15,000 employees as part of a broader strategy to trim costs by $10 billion. The move, outlined in the company's Q2 2024 financial report, is intended to 'right-size and refocus' the organization. Most of the layoffs are expected to be finalized by the end of 2024. In a memo to staff, CEO Pat Gelsinger acknowledged the significance of the changes, stating that the company must 'align our cost structure with our new operating model and fundamentally change the way we operate.' Gelsinger cited the need for more drastic measures to address the company's revenue growth, which has fallen short of expectations, and to capitalize on emerging trends like AI. Notably, Intel's revenue has declined despite having a larger workforce, with the company's annual revenue in 2020 being $24 billion higher than the previous year. The company reported Q2 2024 revenue of $12.8 billion, representing a 1% year-over-year decline, and forecasted earnings of $12.5 billion to $13.5 billion for the third quarter.