The CEO explained that the company must align its cost structure with Intel’s new operating model and change the way it operates because the company’s revenues did not grow as management expected.
Intel announced the reduction of approximately 15 thousand jobs to reduce costs. Intel CEO Pat Helsinger told his employees about it.
“We plan to save $10 billion by 2025, and this includes cutting staff by approximately 15,000 positions, or 15% of our workforce. Most of these steps will be completed before the end of this year,” said of the document.
The CEO explained that the company must align its cost structure with Intel’s new operating model and fundamentally change the way it operates because the company’s profits have not grown as much as management had hoped. Additionally, Intel has yet to fully benefit from “powerful trends like artificial intelligence.”
“We need bolder action to address both issues, especially with our financial results and outlook for the second half of 2024, which is more challenging than previously forecast,” said Pat Helsinger.
He added that the company will soon announce an expanded pension program for eligible workers and will offer a voluntary severance program.
This spring, Intel reportedly plans to spend $100 billion building factories to make AI chips.
The US revoked licenses to supply Intel and Qualcomm chips to Huawei
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.