ALBAWABA – Intel, the American multinational corporation and technology company, said it will terminate about 15% of its staff following its new cutting cost plan.
Intel cutting cost plan
The company issued its second-quarter earnings report on Thursday with a new $10 billion plan to cut its overall costs. Intel said the first step will be terminating about 15% of the workforce in the coming few months.
The company issued its second-quarter earnings report on Thursday with a new $10 billion plan to cut its overall costs. (Shutterstock)
Pat Gelsinger, Intel CEO, wrote a memo for Intel employees saying: "Our costs are too high, our margins are too low.” He added: “These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come."
Intel losses for 2024
The company announced some losses its recently issued second-quarter earnings report. Revenues were recorded at $12.8 billion, which marks 1% drop compared to last year and a total income loss of $1.6 billion.
It is worth noting that Intel marked major losses in the recent years after being the world’s dominant chipmaker in the market. The company is now hardly competing with Qualcomm and Texas Instruments, the two leading mobile chipmakers.
Intel is implementing its new cutting-cost plan with hopes to save $10 billion by 2025. The company also announced earlier the suspension of its fourth quarter profits as it shares dropped by 19%.
