Intel has made news for downsizing its workforce and reducing jobs over the past few weeks. According to a recent statement, the leading company in the computer chip industry reported a 1% decrease in revenue for the second fiscal quarter ending on June 29, compared to the same period last year. As a result, the company has opted to eliminate 15% of its jobs, affecting approximately 17,500 individuals. The reasons behind these actions and the potential benefits of the layoffs will be explored in 5 key points.
Intel has announced a major cost-cutting initiative, with plans to reduce expenses by $10 billion in 2025. This will involve a substantial reduction in workforce of over 15%, potentially leading to layoffs affecting 15,000 to 19,000 employees. This downsizing effort is significant considering the company’s current workforce of more than 125,000 people.
Intel intends to make substantial reductions in research and development, as well as marketing expenses, by billions of dollars annually until 2026. The company is also reducing its investments. It anticipates a 17 percent decrease in capital expenses in 2025 compared to the previous year, amounting to $21.5 billion, based on the midpoint of the chipmaker’s projected range. It foresees these costs remaining relatively unchanged in 2024.
Furthermore, the organization plans to reduce capital expenses by more than 20% this year, simplify operations by eliminating unnecessary projects, and carry out a comprehensive assessment of all ongoing initiatives and equipment to guarantee efficient resource allocation. Version 1: Moreover, the corporation intends to cut down on capital expenditures by over 20% this year, streamline operations by eliminating non-essential projects, and conduct a thorough review of all ongoing initiatives and equipment to ensure efficient resource allocation.