Intel Will Cut Over 15,000 Jobs Amid Struggles to Turn Itself Around
The New York Times
The Silicon Valley chip maker also reported a net loss and declining revenue in the latest quarter.
Intel, the Silicon Valley chip maker, said on Thursday that it would slash more than 15,000 jobs to aid a turnaround plan, as the company tries to recover after a series of stumbles.
The job cuts amount to 15 percent of Intel’s work force. The company also announced other restructuring moves and a reduction in capital spending, which are expected to cut costs by $10 billion in 2025. To conserve cash, Intel said, it will suspend its quarterly dividend in the fourth quarter.
“This is painful news for me to share,” Patrick Gelsinger, Intel’s chief executive, said in a letter to employees. “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.”
The company’s stock fell more than 20 percent in after-hours trading.
Intel, which produces microprocessor chips that serve as electronic brains in most computers, has battled a slump amid stiff competition in chips used for artificial intelligence. Its last major restructuring was in 2016, when the company said it would cut up to 12,000 jobs, or 11 percent of its work force.
Mr. Gelsinger has worked to reinvigorate the company after being named its top leader in early 2021. Among other actions, he quickly moved to become a top industry lobbyist for federal subsidies to encourage more U.S. production of the foundational components.
