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Intel has announced plans to cut 15,000 jobs, about 15% of its workforce.
What’s the deal: According to the company, Intel announced the layoffs to save $10 billion by 2025 following disappointing second-quarter results, which included a $1.6 billion loss. The company has not specified which departments will be most affected but indicated that research and development, marketing, and administrative positions will be impacted. The layoffs will occur in phases over the next seven months.
What the CEO said: In an email to staff, Intel CEO Pat Gelsinger said they were taking “significant actions to reduce our costs. We plan to deliver $10 billion in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15% of our workforce. The majority of these actions will be completed by the end of this year.” He added, “This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history. These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career.”
More on the numbers: Intel’s financial results for the second quarter of 2024 showed revenue of $12.8 billion, a 1% drop compared to the same period last year. Despite this considerable revenue, the company struggled with major financial challenges, reporting a net loss of $1.6 billion, or 38 cents per share.
Stock market slip: Today on Wall Street, the stock market took a significant hit, with the S&P 500 experiencing its worst session in nearly two years, dropping 2.4%. The Nasdaq Composite fell 2.9%, entering correction territory, while the Dow Jones Industrial Average decreased by 2.1%. This downturn was triggered by a weaker-than-expected jobs report for July (4.3% unemployment) and the Fed’s decision not to cut rates, fueling recession fears. The Labor Department reported that nonfarm payrolls grew by only 114,000 in July, a sharp decline from June’s 179,000 and well below the anticipated 185,000.
