Decreased sales with more employees. CEO Pat Gelsinger announces drastic cuts, 15 percent of the workforce has to go
Intel cuts over 15,000 jobs!
Intel CEO Pat Gelsinger cites a loss of 1.6 billion US dollars in the last quarter as the reason for the number of jobs cut at the tech group. The result: a “reduction of the workforce by more than 15,000 employees or 15 percent“.
In acommunication from Intel CEO Pat Gelsingerhe addressed the employees. The “disappointing” result is forcing the company to make cost savings of 10 billion US dollars.
The wave of redundancies should be completed by the end of the year. Gelsinger himself speaks of the “most difficult decision of his career”. Overall, the Intel CEO commented on the redundancies as follows:
It’s painful news that I have to share with you. I know it will be even more difficult for you to read. This is an incredibly difficult day for Intel as we make some of the most consequential changes in our company’s history.
These decisions have challenged me deeply, and it’s the hardest thing I’ve done in my career. I promise you that we will prioritize a culture of honesty, transparency and respect in the weeks and months ahead.
Intel CEO Pat Gelsinger
Declining figures at Intel
Intel today announced its financial figures for the second quarter of 2024. The bare figures read as follows:
- In the past three months, Intel has achieved sales of 12.8 billion US dollars, which represents a year-on-year decline of one percent.
- This resulted in a loss of around 1.6 billion US dollars (previous year: profit of 1.5 billion US dollars).
What’s next for Intel?
In principle, “non-essential work is to be discontinued by 2026”, according to theassociated press release
For example, expenditure on R&D and marketing is to be reduced by several billion.
For further restructuring, Gelsinger has named five cornerstones with which Intel is to be put back on a more successful path:
- Reduce operating costs
- Simplification of the portfolio
- Reducing complexity
- Reduce capital and other costs
- Maintaining growth investments
In this context, the dividend payment will also be suspended from the next quarter in order to tackle “more sustainable profitability”
What exactly will happen with Intel, what consequences will the job cuts have for gamers and whether the company can recover? We will keep you up to date with further developments.
