Intel Confirms Layoffs Hitting 15,000 Workers

At least 15,000 employees will lose their jobs in the latest Intel layoffs as part of a new cost-reduction plan.

Intel announced the layoffs along with its disappointing second-quarter earnings. The Intel layoffs are hitting 15% of the company’s workforce, which totals about 110,000.

Most of the employees will lose their jobs by the end of 2024. We first reported on the layoffs earlier this week when they were reportedly pending.

Intel shares plunged by more than 28% in morning trading on Friday.

“Our Q2 financial performance was disappointing, even as we hit key product and process technology milestones,” said Pat Gelsinger, Intel’s CEO. “Second-half trends are more challenging than we previously expected, and we are leveraging our new operating model to take decisive actions that will improve operating and capital efficiencies, while accelerating our IDM 2.0 transformation. These actions, combined with the launch of Intel 18A next year to regain process technology leadership, will strengthen our position in the market, improve our profitability and create shareholder value.”

Intel's Pat Gelsinger

For its second quarter, Intel reported $12.8 billion in revenue, down 1% from the year-ago quarter. It also reported a $1.6 billion net loss, compared to $1.5 billion in profit for the year-ago quarter.

Related:Latest Intel Layoffs to Impact Thousands of Employees

Intel Layoffs Part of Creating ‘Sustainable Financial Engine’

Intel announced a series of initiatives to create a “sustainable financial engine that accelerates profitable growth, enables further operational efficiency and agility, and creates capacity for ongoing strategic investment in technology and manufacturing leadership.” These include structural and operating realignment across the company, headcount reductions, and operating expense and capital expenditure reductions of more than $10 billion in 2025 compared to previous estimates.

“As a result of these actions, Intel aims to achieve [a] clear line of sight toward a sustainable business model with the ongoing financial resources and liquidity needed to support the company’s long-term strategy,” the company said.

The plan is focused on reducing operating expenses, reducing capital expenditures, reducing cost of sales and maintaining core investments to execute strategy.

The last Intel layoffs, announced last December, meant more than 300 workers in California started 2024 unemployed. This impacted 76 workers in Santa Clara and 235 workers in Folsom.

At the time, Intel said it was working to accelerate its strategy while reducing costs through multiple initiatives, including some business and function-specific workforce reductions in areas across the company.