Chipmaker Intel says it is cutting 15% of its workforce — about 15,000 jobs — as it tries to turn its business around to compete with more successful rivals like Nvidia and AMD.
It's unclear how many jobs will be affected at the firm's Irish operations, largely based in Leixlip, Co Kildare.
In a memo to staff, Intel Corp chief executive Pat Gelsinger said the company plans to save $10 billion (€9.25 billion) in 2025.
“Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate,” he wrote in the memo published on Intel’s website. “Our revenues have not grown as expected — and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low.”
The job cuts come on the heels of a disappointing quarter and forecast for the iconic chipmaker founded in 1968 at the start of the PC revolution.
Next week, Mr Gelsinger wrote, Intel will announce an “enhanced retirement offering” for eligible employees and offer an application program for voluntary departures.
“These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career,” he said. The bulk of the layoffs are expected to be completed this year.
The Santa Clara, California-based company is also suspending its stock dividend as part of a broader plan to cut costs.
Intel reported a loss for its second quarter along with a small revenue decline, and it forecast third-quarter revenues below Wall Street’s expectations.
Its stock plunged 19% in after-hours trading, indicating that Intel could lose roughly $24 billion of its market value when the stock market opens Friday.
The company posted a loss of €1.6 billion in the April-June period.
That’s down from a profit of $1.5 billion a year earlier. Adjusted earnings excluding special items were 2 cents per share.
Revenue slid 1% to $12.8 billion.
