In a surprising quarterly replace, Intel mentioned it will reduce greater than 15% of its workforce. The layoffs are a part of a $10 billion cost-cutting plan the corporate is implementing to revive monetary stability and will have an effect on greater than 15,000 jobs. Intel reported a internet lack of $1.6 billion within the second quarter, a pointy drop from the online revenue of $1.5 billion in the identical interval in 2023.
Chief Govt Pat Gelsinger addressed workers acknowledging the scope of right now’s announcement. “That is painful information for me,” he mentioned. “I do know this might be more durable so that you can learn. That is an especially tough day for Intel as we make a few of the most essential adjustments within the firm’s historical past.”
Along with layoffs, the cost-cutting plan additionally consists of creating separate monetary stories for Intel merchandise and Intel foundries. Intel’s foundry division’s second-quarter working loss reached US$2.8 billion, even exceeding the US$1.8 billion working loss within the second quarter of final 12 months. Intel has been overhauling its foundries to make them extra aggressive. Throughout this era, it needed to depend on different firms for some manufacturing. TSMC, the identical producer utilized by Apple, Qualcomm and AMD, is producing its new .
The corporate took an additional hit within the public eye when issues started to come up with its thirteenth and 14th era desktop CPUs. Whereas a repair is anticipated to be rolled out this month to forestall any additional points, any harm triggered to the CPU by the microcode bug is unlikely.
