Intel Corporation is set to cut 15% of its workforce, amounting to 15,000 jobs, in a bid to restructure its business and compete with rivals Nvidia and AMD. CEO Pat Gelsinger announced the plan in a memo, highlighting the need to align costs with a new operating model and addressing high expenses and low margins. The company aims to save $10 billion by 2025.
The layoffs follow a disappointing quarter and forecast for Intel, founded in 1968. An enhanced retirement offering and voluntary departure program will be introduced next week. Intel also plans to suspend its stock dividend as part of broader cost-cutting measures. The company reported a second-quarter loss of $1.6 billion, with revenue slightly down to $12.8 billion, missing analysts’ expectations.