Intel Planning to Trims 15,000 Workers Till 2025 in 10 Billion US Dollars Cost Reduction Drive

 Intel has revealed that it is going to shed thousands of its employees, more precisely, it is about 15 thousand people. This decision made known in its Q2 2024 quarterly financial statement is to realize $10 billion in efficiency savings by 2025. The loss-making businesses will eliminate more than 13,000 people, or around a seventh of Intel's workforce, with the majority of these measures therefore set to be implemented by year’s end.






In a memo to Intel employees, CEO Pat Gelsinger said the company needed to bring its costs in line with its new structure after the reorganization. While nowadays technology giants invest more in AI and other related technologies, Intel has not been able to increase its revenues steadily and suffers from high operational expenses, which negatively reflects on its profit margin.


Specifically, forecasted difficulties in the latter half of 2024 are expected to hurt the company’s financial performance. For the year 2023, Intel has revealed that its division engaged in chip making was able to post a loss of 7 billion dollars this was however after posting a turnover of 18. 9 billion in revenue. The above financial impacts have put Intel into a very difficult position in terms of its economic stability, thus it has been forced into making radical measures.


For the employees who were affected by the program, Intel will, therefore, grant better retirement benefits and voluntary early resignation options. Gelsinger admitted that such decisions happen to be challenging, however, he agreed to the company holding on to a high level of candor, integrity, and professionalism.


The following news comes against the backdrop of a series of downsizing that has overwhelmed the tech industry this year. Other game development firms like Unity- Discord, Microsoft, and Google have also had to let go of a large number of workers due to financial and working issues.


The outright reduction of employees by 15,000 is one strategic decision that ought to be commended in a bid to make Intel less costly to run and more profitable. Despite such changes being considered a rough time for the company and some of its workers, Intel believes that such measures can help the firm overcome the challenges within the sphere of financial troubles and strengthen its position in the existing environment within the sphere of technology.

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