The chipmaker just announced it’s downsizing its workforce by over 15 percent as part of a new $10 billion cost savings plan for 2025, which will mean a headcount reduction of greater than 15,000 roles, Intel tells The Verge. The company currently employs over 125,000 workers, so layoffs could be as many as 19,000 people.
Intel will reduce its R&D and marketing spend by billions each year through 2026; it will reduce capital expenditures by more than 20 percent this year; it will restructure to “stop non-essential work,” and it’ll review “all active projects and equipment” to make sure it’s not spending too much.
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It’ll be interesting to see how the CHIPS Act money is handled here. Hopefully it came with protections against this kind of bullshit but most likely didn’t
Looks like Intel will be dead by 2030.
They can’t beat AMD in CPUs and they can’t beat NVidia at AI, and definitely can’t best either at graphics.
The US government will never let Intel die, it’s too strategic of a company for the them.
Inb4 Intel security breach/outage
And by non-essential they mean: everything Not connected to AI
Hmmm. Intel is not in phones. Not in any of the current gaming consoles. Not in Apple. Doesn’t grind well for crypto or AI. Not in most IOTs . My last laptop I bought AMD because it runs faster, priced cheaper and the onboard video (Radeon) worked better on Linux.
I’m not a loyalist, Intel make a good product so I can give you my money.
Yeah but none of that really matters other than AI. They sell enterprise CPUs. All the consumer level stuff, is essentially recycling. The designs are for the Xeons and highest end devices. Then you design in workarounds for poor yields of giant chips and figure out who you can sell it to.
The financial documents showed the Intel CEO enjoyed a 45% rise in total compensation from $11.61 million in 2022, to $16.86 million in 2023.
Easier to fire 15000 people then one…
His $16m His $16m salary will not cover the $10b they are planning to save. These layoffs don’t cover that amount of money just in labor costs alone. Those employees were working projects that are being axed. The licensing, rental and utilit costs of offices, equipment purchases, etc all contribute to that figure.
Firing 1 massive overpaid instead of approx 10-15% of your workforce seems like a MUCH smarter decision…
I think you missed the point here. Firing the CEO would not save as much money as firing the 1,500 workers.
I am not defending capitalists here, but there are better arguments than this.
When I saw an earlier article about this I just assumed it was Intel’s usual annual shedding of several thousand employees. But damn, this is on another level, even for them.
Intel will reduce its R&D… spend by billions each year
Time to load up on AMD stock
