News
Intel to lay off 15% of workforce amid challenges
Intel to lay off 15% of workforce as CEO implements costs discipline amid manufacturing challenges and projected losses
Intel to lay off 15% of workforce as CEO implements costs discipline amid manufacturing challenges and projected losses
– Intel is laying off 15% of its workforce to restructure under new CEO Lip Bu Tan.
– The company expects significant losses next quarter, forecasting 24 cents per share in losses.
The downsizing will reduce Intel’s workforce from approximately 96,400 to 75,000 by year-end. Tan expressed that changes in manufacturing strategy would align production with demand rather than preemptively building factories. Intel’s 18A manufacturing process is anticipated to enter high volume, but the company may exit chip production if external customer demand does not materialise.
Financial Outlook
Intel expects significant losses in the upcoming quarter, forecasting a loss of 24 cents per share, contrasting with analysts’ estimates of 18 cents. Despite predicting higher-than-expected revenues, the chipmaker faces an uncertain market, following a strong but fleeting PC demand boost. Its second-quarter earnings underscored the challenges, revealing a significant increase in losses compared to expectations.
