Intel cuts 15,000 jobs as it struggles to keep up with NVIDIA
The company confirmed that the majority of the new layoffs announced will be completed by the end of 2024.
U.S. chipmaker Intel will cut about 15,000 jobs and pause projects, particularly in marketing and R&D, in a bid to revive profits to catch up with rivals like Nvidia, which has become one of the world’s most valuable public companies since the artificial intelligence boom, and AMD.
Intel’s share price fell 20% after the announcement. The move comes after the company reported a loss of $1.6 billion. USD in the April-June period, compared with a profit of $1.5 billion. dollars a year earlier. The company said sales fell 1% year-on-year in the three months to June and warned the second half of the year would be worse than expected. This represented a slowdown from the previous quarter, and the company predicted further weakening in the coming months, which will put pressure on profit margins.
Intel held a major round of layoffs in October 2022, when it also announced plans to cut costs between $8 billion and $10 billion per year by 2025. They ended up covering some of that number of employees later with rehires.
The company confirmed that the majority of the new layoffs announced will be completed by the end of 2024. Spokeswoman Penelope Bruce confirmed that these were new layoffs and the 4% reduction from 130,700 employees in March to 125,300 employees in June is not included in the total.
